Global law firm Ashurst has advised Gasgrid Finland Oy on a ten year agreement with Excelerate Energy for the leasing of an LNG floating terminal vessel which is to be located on the southern coast of Finland. The project will ensure Finland and Estonia’s energy security of supply.
The terminal vessel is a terminal anchored to a port, where liquefied natural gas is re-vaporized into gas and fed into Gasgrid Finland’s gas transmission network. The terminal vessel can also be used to refuel smaller LNG tankers for distribution in the Baltic Sea region. The aim is to make the terminal vessel available next winter, and although the final location will be in southern Finland, new port structures suitable for the terminal vessel will be built on the coasts of both Finland and Estonia. If the construction work is completed in Estonia first, the terminal vessel will be placed there until the Finnish port structures are completed. The final locations of the vessel will be specified in May 2022.
The total cost of the LNG terminal vessel project with the 10-year lease is estimated to be at EUR 460 million, in addition to which there are separate costs associated with the volume of use.
The Ashurst team was led by partner Julia Derrick, assisted by senior associate Lester Lim Kok, consultant Hazel Brasington and senior consultant Huw Thomas. Tax advice was provided by partners Nick Gardner and Tim Gummer, supported by associate Oliver Passmore. Partners Tom Cummins and Michael Neary, counsel Ed McNeill and senior associate Simon Clarke also advised. The Ashurst team worked alongside Finnish counsel Hannes Snellman, led by partner Rabbe Sittnikow.