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Finland's Gasum will divest gas transmission ops by 2020, expand in LNG and biogas - Mr Haikarainen

Gasoil News - Published on Tue, 26 Dec 2017

Image Source: LNG World News
A company executive told Reuters Finland's state-owned gas firm Gasum, the country's sole transmission system operator, will have to break off its network into a new entity by 2020, effectively losing about 10 percent of its revenue. The partition will follow new gas market legislation that come into force from 2018, as Finland's gas market will open to mainland Europe through the Baltic Connector, a 250 million-euro pipeline to Estonia, due to become operational from 2020.

Mr Jouni Haikarainen, Gasum's senior vice president for gas, said that "Opening the gas market will mean we have to unbundle the transmission network, to a new state-owned entity. For Gasum's business that is 10 percent of our revenue."

Gasum's 2016 revenue was EUR 843 million, mostly coming from natural gas sales. The firm also distributes biogas and liquefied natural gas (LNG) across the Nordic region, and plans to further expand after the unbundling.

Mr Haikarainen said that "We have already expanded our biogas and LNG business... We will look into increasing our presence in the Nordics. More asset acquisitions will come if opportunities arise."

A financial transaction between Gasum and the new entity may not be needed for the transmission network's transfer.

He said that "It is not detailed yet but for this separation, a transaction may not be the case. For the owners the value remains. For Gasum, there is a difference."

Source :

Posted By : Rabi Wangkhem on Tue, 26 Dec 2017
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