New LNG deal will allow Finland and Estonia to end imports of Russian gas

By Sergio Chapa (Bloomberg) — Excelerate Energy Inc. has signed a 10-year deal to move a vessel that stores liquefied natural gas to Finland, allowing the nation and neighboring Estonia to end imports of Russian natural gas from winter.

At a ceremony in Helsinki, state-owned natural gas distributor Gasgrid Finland Oy on Friday agreed to charter the use of a specialized tanker from Excelerate known as a Floating Storage and Regasification Unit, or FSRU. . The ships are used as offshore LNG import terminals.

Also read: Germany charters FSRUs to increase LNG imports to replace Russian gas

The deal follows a visit by Finnish and Swedish leaders with US President Joe Biden to the White House. Both nations are seeking to join the North Atlantic Treaty Organization and end dependence on Russian energy imports following the country’s invasion of Ukraine. Germany, Italy and a number of other European countries are also trying to increase LNG imports with FSRUs.

Finland and Estonia account for about 3 billion cubic meters of demand per year and the tanker can deliver 5 billion cubic meters per year, Excelerate CEO Steven Kobos said in a telephone interview from Finland. . That’s about 52 shipments, according to company figures.

“We’re proud to be able to come here and deploy this reliable, tested asset and be able to provide this kind of energy security,” Kobos said.

Excelerate plans to deploy its FSRU vessel, named Exemplar, to Finland by the end of the year, Kobos said. Currently in Argentina, the ship will set sail for the Baltic Sea after the end of winter in the southern hemisphere. The offshore LNG import terminal will replace Russian natural gas imports, and any excess can be sold to neighboring countries, Kobos said. Gasgrid will be responsible for signing LNG supply agreements.

“It’s an attractive market,” Kobos said. “There will be a lot of interest.”

© 2022 Bloomberg L.P.