• 5 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 9 hours LNG Glut To Continue Into 2020s, IEA Says
  • 11 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 14 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 16 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 17 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 4 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 5 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 5 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 7 days China To Take 5% Of Rosneft’s Output In New Deal
  • 7 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 7 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
A New Oil Crisis Is Developing In The Middle East

A New Oil Crisis Is Developing In The Middle East

As Iraqi-Kurds prepare to fight…

Will Demand For Offshore Rigs Ever Recover?

Will Demand For Offshore Rigs Ever Recover?

Offshore drilling companies have struggled…

Russia Set To Import Electricity From Finland

Russia Set To Import Electricity From Finland

Electricity has become so inexpensive in Europe’s Nordic countries that Russia, originally only an energy exporter to the region, will now begin importing power from neighboring Finland as well.

Fingrid, the operator of Finland’s national electricity network, said that for the first time, on June 14, it will begin furnishing the St. Petersburg area just east of the Finnish border, based on a deal recently signed by the two countries.

Related: EIA: Major U.S Shale Plays Have Peaked, Expect Decline To Kick In

The company said the initial feed will include 140 megawatts of electricity and will last for 13 hours, from 9 a.m. to 10 p.m.

“The price of electricity has been so low here in the Nordics that it’s profitable for Russia to bring it in,” said Fingrid’s planning chief, Timo Kaukonen. “It’s the market price that has made this deal.”

So far the two countries have not set up delivery schedule beyond June 14 because each side has to consider the overall European market and the prices fetched by electrical power. The Russian news broadcaster RT, quoting TASS, said the price may rise the very next day.

The price of electricity from the Nord Pool – which includes eastern Denmark, Finland, Norway and Sweden – is much lower on weekends than on weekdays. For example, on June 1, a Monday, the average price for 1 megawatt per hour was more than $35.75. On June 6, a Saturday, it was $11.85; the next day it was even lower, at just over $9.40.

One reason for the current low price of Nordic electricity is the region’s increased reliance on nuclear power generators and wind farms, as well as an energy surplus now that winter is over. The power will be received at one of the four electrical substations in Vyborg, Russia, just east of the Finnish border, in an effort to strengthen the reliability of energy availability in the St. Petersburg area.

Related: Could This Be OPEC’s Long-Term Goal?

The new deal, completed during negotiations between Finland and Russia at the end of 2014, marks an increase in the flow of energy between the two countries. Finland also imports electricity from Russia, usually in quantities of 1,400 megawatts at a time, also through the Vyborg facility.

“For many years Finland has been importing Russian electricity, but that was when there was no direct link to market pricing,” Kaukonen said. “Now the market has started to play more of a part in electricity imports, with electricity also being traded through energy stock exchanges.”

Plans for the countries’ two-way electricity trading began in 2012 when both Russia and Finland were searching for ways to save on energy costs. Since then, Fingrid conducted tests to ensure that the Vyborg station could handle two-way energy traffic, according to Juha Kekkonen, Fingrid’s executive vice president.

Related: Concerns Over Earthquakes Spread To Texas

Finland has been importing Russian electricity since 1982 to meet more than 10 percent of its annual power needs. With the cost of electrical power declining, the two-way arrangement, if it becomes regular trade, may be a way for households and businesses in both countries to get access to more energy at more affordable prices.

By Andy Tully Of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News