EU Okays Aid for Finland LNG Terminal

European Union regulators have given the go-ahead to Finland's proposal to build the country's first LNG terminal with 23.4 million euros ($26.1 million) of state funds, part of a Finnish strategy to diversify its energy supplies away from Russian gas.

The European Commission said in a statement that the state support for the plant complied with EU state aid rules and would also help protect the environment.

The state contribution amounts to less than 30 percent of the total cost while the terminal developer will cover the remainder.

Located on the west coast of Finland, the Pori project with a storage capacity of 30,000 cubic metres is expected to be part of a network of small scale terminals providing fuel for ships.

Reporting by Foo Yun Chee