The Finnish National Emergency Supply Agency (NESA), as the competent authority of the gas supply security regulation (2017/1938), has declared an alarm level according to the regulation regarding gas supply security. The Balticconnector offshore gas pipeline was damaged on October 8, meaning that an important gas import connection will be out of use during the winter season 2023/2024 for at least five months.
The Finnish gas market is stable, increased alert level does not immediately affect the gas market
The Finnish gas market is stable, and natural gas is available as usual on market terms from the LNG terminals in Inkoo and Hamina. The decision of the National Emergency Supply Agency to raise the gas supply security risk level is based on an estimate of the reduced delivery standard (N-1) when one import connection is temporarily out of use. NESA’s raising of the gas supply security alarm level has no immediate effects on the operation of the gas market.
The alarm level is the middle step on a three-step scale. It is introduced in a situation where a gas supply disruption or an exceptionally high demand for gas significantly weakens the gas supply situation, but where the market is still able to manage the disruption or demand without having to resort to other than market-based measures, says NESA in its release (link: Huoltovarmuuskeskus nostaa kaasun toimitusvarmuuden riskiarviota (in Finnish)). With the raising of the alert level, NESA and other authorities are monitoring the gas market and the safety of the gas infrastructure more closely. NESA can also permit companies to use their mandatory gas stocks.
The gas market is actively monitored – Gasgrid Finland reminds of the importance of balancing
As the transmission system operator responsible for the gas transmission system in Finland, Gasgrid Finland actively monitors the gas market and reminds market participants of the importance of balancing t in a market situation where gas demand is mainly covered by gas imported through LNG terminals. Gasgrid Finland emphasizes that the gas system remains stable, and the alarm level stated by the National Emergency Supply Agency has no immediate effects on the gas market.