Finnish state-owned gas trader Gasum has resumed importing liquefied natural gas (LNG) cargoes from the Kryogaz-Vysotsk LNG plant in Russia.
Gasum suspended LNG imports from the Novatek-operated export terminal in April 2023. At the time, the company stated that its long-term export contract with Gazprom Export, a Gazprom subsidiary that manages exports from Kryogaz-Vysotsk, was still valid. However, since 4 April, there has been no activity from Gasum’s tankers at the Vysotsk port.
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However, on 3 July it was reported that data had shown Gasum’s LNG tanker, the Coral Energice, delivering LNG cargo to Finland via the port of Tornio.
In an email comment published by Reuters, a Gasum spokesperson stated: “I can confirm that we have picked up LNG from Vysotsk.” The spokesperson added that the take-or-pay deal between Gasum and Gazprom Export remained unchanged.
This implies that the take-or-pay deal, wherein the buyer must pay a penalty to the seller if it fails to uptake a minimum amount of goods, has been costing Gasum a penalty since April. Reuters reported that on 24 April, the Coral Energice had docked in Vysotsk but had left without collecting any LNG cargo.
The resumption of LNG imports into Finland will mean some relief for the country’s gas supply, which has been disrupted since early 2022 as a result of the invasion of Ukraine. In May 2022, Russian state oil and gas company Gazprom cut off all pipeline-based gas imports to Finland due to a dispute between itself and Gasum over a payment issue involving the two countries.
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By GlobalDataThe dispute arose after Russia demanded its European customers pay for gas supplies in roubles to bypass the effects of sanctions following its invasion of Ukraine, a demand Finland refused. This contract referred to pipeline gas only, and not LNG.
Because of this, Russia cut pipeline gas exports to Finland, which imported around 60–70% of its gas mix from Russia. Although gas only accounted for around 5% of Finland’s energy mix in 2021, that 5% is centred around heavy and chemical industries that have yet to find true alternatives.
In May 2023, Gasum terminated its pipeline gas contract with Gazprom, severing the pipeline link between the two countries. After more than a year without pipeline gas and months without LNG imports, the Finnish industry will see some respite from the reduction of supply.
