Finland’s Gasum says to take Gazprom’s unit to arbitration

Finland’s natural gas and LNG supplier Gasum said it would take its dispute over ruble payments with a unit of Russia’s Gazprom to arbitration proceedings.

State-owned Gasum said in a statement on Tuesday it had been negotiating the details of its long-term natural gas contract with Gazprom Export since autumn last year.

In April, Gazprom Export sent Gasum a letter, requesting that going forward the payments agreed in the supply contract should be made in rubles instead of euros. In addition, Gazprom Export has made other claims on Gasum regarding the supply contract, the latter said in the statement.

“Gasum does not accept Gazprom Export’s requirement to switch to ruble payments and will consequently not make payments in rubles or under Gazprom Export’s proposed payment arrangement,” it said.

In addition, the companies are in “significant dispute” concerning other claims submitted under the contract, Gasum said.

“Overall, this is something that Gasum cannot accept and has decided to take the disputes regarding the supply contract to arbitration in accordance with the contract,” it said.

LNG import plans

Following these moves, Gasum says there is an “increased risk” that Gazprom Export would halt gas supply from Russia to Finland.

Gasum said it had been preparing for this situation together with its customers and the national authorities.

During the coming summer season, Gasum will aim to ensure the availability of natural gas for its Finnish customers through the Balticconnector gas pipeline which connects the gas transmission networks of Estonia and Finland.

However, constraints on transmission capacity “can make this challenging,” it said.

“In this situation, Gasum had no choice but to take the contract to arbitration. In this challenging situation, we will do our utmost to be able to supply our Finnish customers with the energy they need,” Mika Wiljanen, CEO of Gasum, said.

Finland and Estonia have earlier this year revealed plans to jointly charter a floating storage unit (FSRU) as part of plans to diversify supply sources and reduce reliance on Russian gas supplies.

The two countries have agreed to build jetties on both sides of the Gulf of Finland, in Paldiski in Estonia and Inkoo in Finland.

Estonian investment firm Infortar recently joined forces with compatriot energy company Alexela to develop the FSRU-based LNG import terminal in Paldiski.

Alexela is also a shareholder in Finland’s Hamina LNG import terminal that should start operations later this year.

- Advertisements -

Most Popular

QatarEnergy to further boost LNG output

State-owned LNG giant QatarEnergy said on Sunday it will further boost its liquefied natural gas production from the North...

Deutsche ReGas starts commissioning Mukran FSRU terminal

LNG terminal operator Deutsche ReGas has kicked off commissioning activities at its FSRU-based LNG import facility in Germany’s port...

CEO: DOE’s permit pause will not slow down Cheniere’s LNG expansion plans

US LNG exporting giant Cheniere is going "full steam ahead" with plans to expand its Sabine Pass and Corpus...

More News Like This

Gasum launches new bio-LNG station in Norway

Finnish state-owned energy firm and LNG supplier, Gasum, has launched a new bio-LNG fueling station for trucks in Norway. According...

Gasum to build new Swedish bio-LNG plant

Finnish state-owned energy firm and LNG supplier, Gasum, has decided to build a new liquefied biogas (bio-LNG) plant in...

Finland’s Gasum delivers another LNG cargo to Inkoo FSRU

Finnish state-owned energy firm Gasum has delivered another liquefied natural gas (LNG) cargo to the Inkoo FSRU-based terminal operated...

Finland’s Gasum inks e-methane deal

Finnish state-owned energy firm Gasum will buy e-methane from Nordic Ren-Gas to supply it to its customers in the...