HomeNewsFinland orders more gas amid cold spell, record power price

Finland orders more gas amid cold spell, record power price

1/5/2024

(Reuters) - Finland's gas system operator said on Friday it had invoked its right to order a rapid extra delivery of LNG to ensure market balance amid a surge in demand driven by a prolonged cold spell that drove up electricity prices.

Finland is experiencing an exceptionally cold start to the year, with temperatures ranging from -15 Celsius (5 Fahrenheit) in the south to below -40 C (-40 F) in Arctic Lapland.

Gasgrid said the soaring price of electricity had resulted in demand on Thursday for 130 GWh of gas, the highest daily consumption in more than two years, leaving some 525 GWh in storage at the country's Inkoo LNG import terminal.

In response, Gasgrid ordered extra supply of 100 GWh of gas to be delivered to Inkoo before the scheduled arrival on Jan. 11 of the next commercial cargo, Gasgrid said in a statement.

LSEG data showed a small LNG vessel, the Coral Energy, was set to arrive at Inkoo from Norway on Jan. 7.

Power grid operator Fingrid and the government urged the public on Thursday to save electricity, particularly during peak hours, to prevent blackouts. The electricity system was stable on Friday and demand was somewhat lower than expected, Fingrid said.

The average Finnish price for Friday stood at a record 890.54 euros ($972.91) per megawatt hour, far exceeding the previous high from 2010 of 505.68 euros.

"For customers who have an electricity contract following the spot prices, the electricity bill (on Friday) may be nearly 20 times higher than on an average day," the Economic Affairs Ministry said late on Thursday.

A power cable connecting Finland and Estonia briefly went offline on Friday but supply was quickly restored, Fingrid said separately.

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