Gas supply situation and transmission system in the region

Gas supply situation and transmission system in the region. Finnish TSO

Christer Paltschik

Gasum Oy

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Christer Paltschik © Copyright Gasum 04.10.2007

The gas supply situation in Finland

• Finland has no domestic natural gas resources

• Since the introduction of gas in 1974 all Finland´s gas is imported from Russia

• Gasum and Gazprom have signed a long term gas supply contract.

• Finland has no connection to the interconnected European gas grid

• Finland has no storage facilities for natural gas

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The natural gas transmission system in Finland

Consumption of the Natural Gas in the Base Scenario

0

10

20

30

40

50

60

70

80

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Source: Gasum 2007

TWh

Turku AreaOther UseSeparate Electricity ProductionDistrict Heating and PowerIndustry

• Total length of 1.100 km• 200 delivery points• 3 compressor stations• Operated from Valkeala Control

Center• Present overall transmission

capacity 800.000 m3/h• Owned and operated by Gasum Oy

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Investments are one of the key drivers in developing the Finnish gas market

Possible developments of and investments in the gas supply infrastructure in order to

• Meet the need of the growing market

• Enhance security of supply

• Diversify supply

are

• Increase the capacity of the present system

• Extend the grid to new areas

• Develop interconnections with other systems

• Supply via LNG

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Investments in the transmission system in Finland

0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006 2007 2008 2009 2010 2011

MEU

R

Investment Programme 2010

• increasing the capacitys of the existing system• extending the network to new areas

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Possible investments in the gas supply infrastructure

Interconnectionn of theBaltic and Finnish systems• Balticconnector

(120–150 MEUR)

Supply via LNG

• Joint LNG-terminal for the Baltic and Finnish markets

(150–200 MEUR)

Gasstorage in

Latvia

LNG

Baltic-connector

Gasstorage in

Latvia

LNG

Baltic-connector

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Satis

fact

ion

1

2

3

4

5

1 2 3 4 5

Importance and Satisfaction ratings for differentaspects of investment

Financing the investment

Planning & Consents

Regulatory framework

Importance

Gas Transmission Europe (GTE) investment survey

Planning and Consent, and to a lesser extent financing, delay and complicate investment

Regulatory framework is crucial for investment

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Measures to improve the investment climate• Movement towards a stable, predictable and compatible regulatory

regime across member states is essential for facilitating a positive investment climate

• Underpinning investment through long-term binding commitments, from both the market and regulators, is vital to facilitate investment

• There must be clear rules for investment conditions, including length of the regulatory period

• A reasonable and competitive rate of return on the assets must be guaranteed

• Efficiency targets must include incentives and freedom to develop the activities

• Improved coordination and cooperation within and between regulators and TSOs vital in case of an investment affecting two or more TSOs

It is of vital importance that all stakeholders work together to

improve the investment climate.

Thank You !

Gas supply situation and transmission system in the region

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