EU invests 187 mln euros in first gas pipeline between Estonia, Finland

The European Union(EU) has allocated 187.5 million euros (about 210 million U.S. dollars) for the construction of the Balticconnector, the first Estonia-Finland gas pipeline, as part of the bloc's efforts to unite its energy markets, the EU said on Wednesday.

The Balticconnector, set to end the gas isolation of Finland and develop the Baltic regional gas market, contributes to solidarity and security of supply in the entire Baltic region, the European Commission, or the executive body of the EU, said in a statement.

"Diversifying energy sources and routes, and uniting the energy markets... is key to ensuring secure, affordable and sustainable energy for all EU citizens," the statement quoted Commissioner for Climate Action and Energy Miguel Arias Canete as saying.

"What the Commission has started with the Poland-Lithuania pipeline (GIPL) we are now pursuing with the support to Balticconnector - promoting a chain of projects that will end the gas isolation of north-eastern Europe and develop the Baltic regional energy market," he added.

The EU's financial support to the Balticconnector comes from the Connecting Europe Facility program and corresponds to 75 percent of the needed funding.

The pipeline will be constructed jointly by Baltic Connector Oy (Finland) and Elering AS (Estonia) and it will include Finnish onshore (22 km) and offshore (80 km) sections, as well as an Estonian onshore (50 km) one.

The pipeline is expected to be operational by December 2019. (1 euro=1.12 U.S. dollar) Enditem