The state of Finland’s gas system is stable, and the supply of gas is secured

The situation of the Finnish gas system is stable, and the supply of gas from the LNG terminal in Inkoo has been secured. The terminal has the capacity and the ability to deliver the gas Finland needs, including in the coming winter, even though gas consumption is typically higher in winter seasons. Market players have been instructed to ensure the gas supply they need by ordering it to Inkoo or the Hamina LNG terminal, so that the continuity of the gas supply is secured in the coming winter season.

LNG Terminal Inkoo update and coming Winter 2023/2024

The reservation possibility for winter period 2023/2024 of the Inkoo LNG Terminal capacity has been on hiatus since 9.10.2023. This has given the terminal operator time to assess required measures to offer current free capacity, in the most neutral and fair way possible, and with the best premises available to the market participants to secure uninterrupted gas flows to the Finnish market. In order to offer capacity in a fair and nondiscriminatory way LNG Terminal Inkoo decided to revise current conditions for Joint Use and Service Schedule for the coming winter. The Finnish Energy Authority approved these temporary changes to the rules on the 18^th of October.

Extended Joint Use and Capacity allocation for Winter 2023/2024

One of the temporary changes to the Terminal Rules is the inclusion of unsold Q4/2023 capacity to Q1/2024 joint use. This means that unsold capacity in Q4/2023, that under normal rules would be seen as Late Spot Slots and not part of Joint Use, will now be converted to Spot Slots and Joint Use principles will be applied for the full period starting from 14^th of December 2023 to 7^th of April 2024. In addition, no slots in Q1/2024 will convert into Late Spot Slots even if remained unsold until a stage where they would under normal rules be treated as Late Spot Slots.

Best efforts will be made that spot capacity booking will re-open during week 43 for the updated schedule. Booking will then open for all available 800GWH slots, and capacity booking period will be open for two days. Applicants will be asked to define the number of requested slots and identify which slots they are requesting in a priority order in their booking request.

In case Spot Slot Requests exceed the available number of slots the Terminal Operator will refer to the same method used for Annual Capacity Allocation Congestion Management as described in the Terminal Rules clause 8.4. If two or more requests for the same Scheduled Slot fulfil the conditions, the Terminal Operator shall prioritize the Applicant on a first-come-first-served basis, according to the timestamp of the request email. In this case disputed slot(s) will be allocated in rounds where the Applicant with the earliest timestamp on their request will have the first choice to choose one (1) slot per round. The order thereafter for other applicants will also be determined based on the timestamp of the request. This method will be applied until all requested slots are allocated to the Applicants.

If Slots remain unsold after the initial capacity booking period, they will be available on a first come first served basis.

Reduced Capacity Late Spot Slots for Winter 2023/2024

Floating LNG Terminal Finland Oy will reserve the right to open Reduced Capacity Late Spot Slots for Winter 2023/2024 These Slots will be up to around 500 GWH and offered on a need basis. Late Spot Slot conditions will be applied to these Reduced Capacity Late Spot Slots, and Joint Use will therefore not be applicable to these. The LNG delivered during these slots will have to be withdrawn according to the regasification period defined in the invite.

Service Schedule for Winter 2023/2024

The revised Service Schedule is shown below as a preliminary version. The slot sizes for the winter period are calculated and based on 800GWH cargoes. The delivery windows have been matched to fit said 800GWH cargoes based on the assessed gas usage with a flat average profile. By this the Terminal Operator can ensure a natural buffer of around 200 GWH in the Terminal. If a Spot Slot holder wishes to bring a cargo of different size due to market demands this will be possible at Terminal Operators Discretion. If such deviation leads to longer discharge time than given unloading time as per terminal rules based on 800gwh Cargo size all extra costs are to be on Spot Slot holder. Spot Slot holders’ cargo size cannot be lower than the Terminal Users max borrowed net position towards other Joint Users.

Currently six (6) Spot Slots will be available for allocation. One Spot Slot for March has been reserved already during the Annual Capacity Allocation and has been accommodated into the updated Schedule.

Market participants are welcomed to comment the preliminary schedule until Tuesday 24th of October 2023 to rasmus.hellman@gasgrid.fi. The final Service Schedule will be published soonest after that, and capacity booking opened for below period.