Finland's National Emergency Supply Agency (NESA) has activated a gas supply alert level following the shutdown of a critical pipeline connected to Estonia. Despite the warning, the agency has reassured the public of the country's gas market stability.

The alert, declared this week, signifies a significant supply constraint without the need for non-market-based interventions, as stated in the NESA's press release. While the market remains under close observation, the agency retains the authority to grant companies permission to utilize their compulsory gas reserves.

The latest pipeline shutdown, affecting the Balticconnector gas pipeline co-owned by Finland and Estonia, has compelled the NESA to elevate the warning level. The pipeline, operational since 2020, is expected to remain nonfunctional until at least April 2024 due to damage caused by a Chinese-owned vessel's anchor, according to the National Bureau of Investigation (NBI) findings.

Gasgrid, the operator of the Balticconnector, and Elering AS, the joint owner, have assured the stability of gas supply in their respective markets despite the shutdown. To mitigate the impact, Gasgrid has opened bidding for terminaling slots at the Inkoo LNG terminal, providing an alternative source to fill the supply gap created by the pipeline suspension.

The Finnish Energy Authority has approved temporary changes to the Inkoo floating LNG facility's rules to ensure fair and non-discriminatory access to unsold capacity, guaranteeing an uninterrupted gas supply during the crisis period.