Finnish chemical industry ready for next winter

The Finnish chemicals industry is ready to switch 90-95pc of its gas consumption to an alternative source in the next two years and expects no curtailment in production as a result.

Only small companies may have difficulties in finding and implementing solutions to switch from gas to an alternative, as it requires investment and time, head of Finland's chemical industry association Mika Aalto told Argus. Gas burn by companies that cannot turn to alternative sources is negligible, accounting for a few percent of aggregate gas consumption, he said. Some companies will already be able to switch immediately to other fuels.

Gas consumption by Finland's manufacturing sector was 14.4TWh in 2019, of which the chemical industry consumed 7.84TWh. Around a fifth of companies in the Finnish chemical sector use gas as an energy source or raw material. Each company chooses its own approach to reducing gas consumption, with various solutions and different energy sources available, Aalto said. The association expects no "major obstacles" in the production plan in 2022-23, he said.

The government secured supplies thanks to its LNG terminal, which secures a significant part of consumption. There have been no direct gas supplies from Russia to Finland since 21 May, when Finnish importer Gasum was cut off by Gazprom for refusing to transition to payment in roubles.

The chemical industry made up 17pc of Finnish industrial output and 18pc of exports in 2020, according to the association.

By Victoria Dovgal and Brendan A'Hearn