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The negotiated solution reached by the gas companies will ensure a competitive price for gas imported to Finland over the coming years.
Gasum and the Russian gas company Gazprom Export have conducted negotiations on the supply price of gas since the beginning of 2014. Because the companies were not able to reach an agreement, Gasum referred the matter to an arbitral tribunal for settlement as set out in the supply contract.
The companies managed, however, to conclude their negotiations before the commencement of the arbitral tribunal session. The price of gas has already decreased considerably during 2015 and is currently at a level more than 30% lower than a year ago. The solution reached in the negotiations resulted in a slight further reduction in the price of gas, and the price linkage to the market price of oil will also be lessened. This will increase price predictability and ensure that gas imported to Finland will be price competitive in the European context in the coming years.
Gas is a versatile energy source with guaranteed supply security – including for winter periods of peak consumption. Gasum pays particular attention to the maintenance of price competitiveness, and the outcome of the negotiations will provide a solid starting point for the promotion of the Finnish gas market. In addition to the supply price, the price competitiveness of gas is affected by several other factors, with the most important of these being taxation, the price of CO2 emission allowances and, in combined heat and power (CHP) production, also the market price of electricity.
”We’re happy with the negotiated solution. It will enable us to secure our customers’ access to a competitive fuel far into the future. We’ll continue our active development of the Southern Finnish pipeline gas market and infrastructure. At the same time we’ll be investing in the production of Finnish biogas and the development of the LNG infrastructure outside the gas pipeline network where LNG is a competitive alternative to oil-based fuels,” says Gasum CEO Johanna Lamminen.
For further information please contact:
For queries and interview requests please phone +358 20 44 78 661 (Henna Walker, Executive Assistant)
Johanna Lamminen, Chief Executive Officer, Gasum
Phone: +358 20 44 78 661 (Henna Walker, Executive Assistant)
Olga Väisänen, Vice President, Communications, Gasum
Phone: +358 20 44 78 628 firstname.surname(a)gasum.fi