The LNG terminal has become a headache for Finland: diversification has gone wrong

The floating LNG terminal in the Finnish Inkoo was supposed to compensate for the country's refusal to import Russian gas. However, the main import hub operates at only 15-18% of capacity. On the one hand, it is too powerful for Finland — it is able to regasify 5 billion cubic meters per year with consumption in the region of 1.5 billion cubic meters. On the other hand, the purchase of gas through the terminal is so expensive that most of the fuel is imported through Estonia. But even this does not save the country from the highest gas prices in the EU, which are paid by all Finns.

Finland has the highest gas prices in the EU countries. This winter, the cost of fuel on the stock exchange jumped to almost $ 1,000 per thousand cubic meters, whereas, for example, in Germany it did not rise above $ 600. Moreover, the neighboring Baltic States have lower prices.

One of the reasons was the LNG terminal in Incoo. When Finland refused to switch to a new payment mechanism for Russian gas and Gazprom stopped deliveries in 2022, the country leased the Exemplar floating terminal, which was supposed to become a source of gas not only for the country, but also The Baltic States.

However, everything went wrong. Terminal services turned out to be so expensive that even Finnish companies prefer to buy gas in The Baltic States. For example, regasification costs $20 per thousand cubic meters at the Lithuanian LNG terminal in Klaipeda, and $30 at the Finnish Incoo. Plus, there is an unloading fee of 10 thousand euros and other fees that are not available in Klaipeda.

As a result, the Baltic version is only 30% cheaper at the regasification stage.

It is not surprising that in such a situation even Finnish companies prefer gas from other sources, and the terminal, in fact, did not meet expectations. According to GIE, in 2025 it was used at 18% of capacity, and this year at 15%. In January and February, an average of 2 million cubic meters per day are received from the terminal, while three times more goes from Estonia via the underwater gas pipeline — an average of 5.85 million cubic meters per day.

The representative of the state-owned company Gasgrid Mika Metiri confirmed this situation.

"Most of Finland's gas demand in January was met by gas imported from the Baltic region through the Balticconnector underwater pipeline between Finland and Estonia, and the pipeline capacity has been fully utilized," the Finnish GTS operator said in a statement.

According to the company, in January, consumption in the country jumped to the highest level since 2021.

Obviously, Finland will have to continue to live with higher gas prices. According to EEX, on February 24, gas for the country cost $ 526, and in Germany — $ 401. In Lithuania and Latvia, fuel was sold for $ 507.

Gas companies are trying to find demand for the Finnish terminal. Lithuanian operator Amber Grid has taken the initiative to create an Amber Corridor, through which even more gas will flow to Europe and Ukraine through the region, including Incoo. However, he did not explain what could motivate companies, even if local traders do not rush to the Finnish terminal.