gasum's year 2014 ABOUT THIS REPORT

CONTENTS GASUM'S YEAR 2014 6 Publisher Change Gasum Corporation supported P.O. Box 21 Miestentie 1 by our new 02151 Espoo strategy Finland About this report 3 Editor-in-Chief Gasum in brief 4 Anna Ailio Anniversary year of gas CEO’s review 6 [email protected]

Gasum in 2014 8 Editing and layout 40 years ago in 1974 Finland gained access to a new source of energy — natural gas. Originally an industrial fuel, today Key events of the year 10 Miltton Oy 20 natural gas is also used to heat up households, industry and 14 Photography Strategy 12 Gasum bought as a land and marine transport fuel. In its liquefied form (LNG), Tomi Parkkonen natural gas can also be delivered outside the gas pipeline a majority stake Petteri Vilkki network, and therefore LNG is expected to open up new Gasum's Gasum Corporation Business areas 14 in Skangass opportunities for the development of the Finnish gas market. business Getty Images Energy trade 15 LNG distribution Gorilla business iStockphoto In addition to marking 40 years of gas in Finland, 2014 was Biogas and transport solutions 18 Shutterstock also the 20th anniversary of Gasum. Originally established as MCI Press LNG 20 the natural gas unit of Neste, today the Finnish State owns 75 per cent of Gasum. In addition to natural gas, 100 per cent Energy services 24 We promote sustainable Print run 500 Finnish biogas flows in the Finnish gas pipeline network. Transmission services 26 28 development Printing house You will also find all of Gasum's other important events in 2014 Lönnberg, Helsinki in this publication. The Annual Report is available in Finnish Corporate responsibility 28 and English on the Gasum website and in print. Gasum's Paper Financial Statements and Corporate Responsibility Report can Innovations and future 30 Cover Cocoon Offset 300 g/m2 be found online in Finnish and English. With its financials, Stakeholder cooperation Inside pages Gasum adopted reporting in compliance with the International and energy market 32 2 32 Cocoon Offset 120 g/m Financial Reporting Standards (IFRS). With corporate Responsible employer 34 We develop responsibility, Gasum is reporting according to the Global Address source Reporting Initiative's (GRI) G4 guidelines in 2014. Supply security and safety 36 the Finnish energy Gasum Corporation’s sector and participate customer and stakeholder Natural energy gas value chain 38 data file in energy policy

Executive Management Group, Board of Directors and Supervisory Board 40 Particularly good security Offices and facilities 36 of gas supply in 2014 and natural gas 42 READ MORE AT WWW.GASUM.COM

GASUM'S YEAR 2014 3 GASUM IN BRIEF GASUM IN BRIEF

Gasum – Cleanly Finnish State acquires majority holding in Gasum The Finnish State acquired majority holding in Gasum on November 3, 2014 by purchasing the 31 per cent stake of 75% with natural energy gases Fortum Corporation and the 20 per cent stake of E.ON of the company. Prior to The State of Finland the purchase, the State shareholding in Gasum is a Finnish expert in natural energy gases. Gasum imports Gasum was 24 per cent. The Prime Min- ister’s Office transferred its shares in The owners are natural gas to Finland and upgrades biogas. The company transmits Gasum to Gasonia Oy, a state-owned com- and supplies them for energy production, industry, homes and land pany set up for the ownership arrange- committed to and maritime transport. The company has production facilities, ment. After the transaction, Gasonia Gasum’s strategy holds 48.5 per cent, OAO Gazprom 25 per GASUM'S LNG terminal projects and terminals in Finland and Nordic countries. cent and the National Emergency Supply OWNERS and the sustained Gasum has approximately 300 employees. Agency 25 per cent of Gasum’s shares. "We are an active developer of LNG development of our and biogas infrastructure and produc- company. tion in Finland and other Nordic countries, whereby we will be able to offer more Our business areas competitive energy to meet our custom- ers' needs," says Gasum CEO Johanna Lamminen. 25% OAO Gazprom

ENERGY TRADE LNG ENERGY SERVICES TRANSMISSION SERVICES GASUM GROUP ORGANIZATION JAN 1, 2015 REVENUE 2014

Our supply chain Maintenance Jarko Alanko €1,079 Project Services, HSEQ Ari Suomilammi million

Strategy, Corporate Responsibility Sari Siitonen ENERGY LNG ENERGY TRANSMISSION OPERATING Communications, TRADE SERVICES SERVICES Marketing Tor Morten Olga Väisänen Aleksei Novitsky Jarko Alanko Ari Suomilammi PROFIT 2014 Osmundsen

PRODUCTION, TRANSMISSION USAGE Legal Matters, HR SOURCING AND SALES AND DISTRIBUTION Kristiina Vuori Gas Diversification and active Transmission and distribution of Diverse use of natural gas Finance 5.1 Exchange € Jussi Teijonsalo development of gas infra- gas with excellent supply security and biogas in energy Pekka Karinen structure and competitive and safety levels and taking the production, industries, supply of gas. customer into consideration. households and land as well million Emission-reducing solutions. as maritime transport. CHIEF EXECUTIVE OFFICER Johanna Lamminen

4 GASUM'S YEAR 2014 GASUM'S YEAR 2014 5 CEO’S REVIEW CEO’S REVIEW STILL DRIVING CHANGE — WITH A NEW GEAR

Our company’s new growth in 2014 was driven by our major efforts and fast-proceeding LNG investments in the market outside the gas pipeline network.

The promotion of Finnish competitive- duction. In accordance with our sup- the Balticconnector pipeline project ness and wellbeing requires reasonably ply agreement, we have launched price requires the realization of the South- priced energy that helps minimize the negotiations with Gazprom Export. ern Finnish LNG terminal project and burden on the environment. Carbon di- progress made in the major gas infra- oxide and local emissions from natural Major steps forward structure projects in the Baltics. gas are considerably lower than those taken in our LNG business from other fossil fuels. Natural gas Our Skangass acquisition enables us Biogas and road transport plays an important role in Finland’s to develop the Nordic LNG market to solutions to be developed in 2015 Energy and Climate Roadmap 2050. better serve industries, shipping and Our third biogas facility became opera- In recent years the price competi- heavy-duty road transport in the re- tional in Lahti in late 2014. We see bi- tiveness of gas has been poor against gion. Our expansion beyond Gasum’s ogas as a future opportunity for all re- other fuels such as coal. This is due to traditional market area guarantees sponsible enterprises and households. several factors including taxation and larger-scale sourcing and improved Therefore we will invest in our biogas the low price levels on emission allow- logistics, allowing us to deliver energy and transport solutions and ensure ances and electricity. more efficiently to our customers. increases in biogas capacity as well as Amendments to Finnish heat pro- The new Skangass LNG terminal developing ways to make environmen- duction taxation reduced the competi- in Lysekil, Southern Sweden, became tally friendly gas-fuelled vehicles a tiveness of natural gas against other operational during the year. The con- more common sight on the roads. fuels in 2010. The tax increases took struction of our LNG terminal in Pori, place in three stages in 2011, 2013 and Finland, also began right after the We renewed our strategy 2015. The Government promised in investment decision. We also sealed Our development projects will be conjunction with the tax increase to another investment decision, the con- driven by our renewed strategy at the monitor the development of the com- struction of the Manga LNG terminal beginning of the year 2015 to provide petitive setting of natural gas and the in Tornio, Finland, with our partners our customers with competitive and impacts of the tax reform. Over this Outokumpu, SSAB and EVP Energy. intelligent gas solutions and utilize ex- period, however, gas consumption in In addition, access to LNG for land isting and underway gas infrastructure big cities has decreased by almost and maritime transport in particular efficiently. 8 TWh while the consumption of solid must be improved in Southern Fin- I would like to thank our customers fuels has increased by 6 TWh. This land. We will explore the opportuni- and stakeholders for excellent coop- has resulted in the carbon dioxide ties to advance the Southern Finnish eration. We will continue our active emissions from, e.g., Helsinki, Espoo, LNG terminal project. In order for the debate about the role of gas in the Despite the major decrease in natural gas Vantaa, Tampere and Lahti energy project to be implemented, it must be energy portfolio of the future in order consumption last year, the volumes of LNG production in 2014 being around 1 commercially viable, the Baltic Rim to ensure competitive and cleaner en- million tonnes (around 20 per cent) gas market further developed, and ergy for our customers. and biogas increased. We’re determined to higher than in 2010. sufficient financial support for the I also want to acknowledge our ensure our customers’ access to competitive The restoration of price competi- project ensured. The planning pro- employees for giving a kick-start to our tiveness is vital for gas consumption to cess for the Balticconnector offshore transformation project last year. energy and are constantly working hard increase and for gas to regain its posi- pipeline interconnecting the Finnish to achieve this.” tion among the most popular fuels for and Estonian gas markets is also still JOHANNA LAMMINEN combined heat and power (CHP) pro- underway. The implementation of Chief Executive Officer

6 GASUM'S YEAR 2014 GASUM'S YEAR 2014 7 GASUM IN 2014 GASUM IN 2014

Comparative prices OPERATING PROFIT (%) Key figures 2014 per equivalent liter of 10 petrol, Feb 2, 2015 8 BIOGAS 6 2014 2013 4 29.3 33,877 3.9 REVENUE TWh MWh TWh 0.928 2 0 SALES OF NATURAL GAS BIOGAS INJECTED INTO SALES OF LNG €/l 2011 2012 2013 2014 €1,079 €1,150 IN FINLAND THE NETWORK IN FINLAND IN NORDIC COUNTRIES (2014: 0.963) million million (2013: 33.2) (2013: 31,721) (2013: 2.6) REVENUE (€ MILLION) OPERATING PROFIT NATURAL GAS 1,500 1,200 €5.1 €40.5 0.851 900 million million 600 BALANCE SHEET TOTAL €/l 300 (2014: 0.899) 0 2011 2012 2013 2014 €1,621 €823 GASUM million million CAPITAL EXPENDITURE Year of changes €51.5 €21.6 IN 2014 in the gas market million million Despite a drop in natural gas CO EMISSION FACTORS (T/TJ) EQUITY RATIO 2 sales volumes and, consequently, 307 Group revenue, we developed our EMPLOYEES NATURAL GAS 55.0 operations and launched a significant number of development projects (2013: 273) 28.4 51.8 during the year. per cent per cent LNG 55.8 The Skangass acquisition EMPLOYEES BIOGAS* 56.1 heightened the role played by our LNG business, and our biogas business MOTOR GASOLINE 69.0 gained several new customers. The Group’s performance was modest, 307 273 COAL 93.3 Natural gas and we wrote off a total of €10 million in acquisitions under assets under has been imported construction in our balance sheet. TAXES PAID PEAT 105.9 to Finland non-stop See our separate Financial Statements 1,515 0 10 20 30 40 50 60 70 80 90 100 110 for 40 years. for more figures at www.gasum.com. MEDIA HITS €4.2 €7.0 * Biofuel, with its carbon dioxide emissions not included in Finland’s million million total greenhouse gas emissions or taken into account in emissions trading (2013: 805)

8 GASUM'S YEAR 2014 GASUM'S YEAR 2014 9 KEY EVENTS 2014 KEY EVENTS IN 2014 Highlights of the year

September

The Finnish Ministry of Employment and the Economy makes a positive November investment support decision on the Pori LNG import terminal. Skangass makes The Finnish State acquires the shares an investment decision and begins of Fortum and E.ON in Gasum, raising the construction of the Pori LNG terminal its ownership to 75 per cent. May and the natural gas logistics chain. – SEE PAGE 22 The expropriation permit for March Gasum and the Lyse Group the natural gas pipeline planned complete Gasum’s acquisition Gasum joins the Climate Leadership Council for Turku, Finland, (the Western Johanna Lamminen of Skangass on May 2, 2014. Skangass July founded by leading Finnish companies. Extension) is given up. starts as Gasum’s new CEO complements Gasum’s LNG supply on March 1, 2014. and enables the rapid development LNG projects, including the LNG Gas cookers in Helsinki households are fueled Finland and Estonia reached – SEE PAGE 6 of the LNG infrastructure. terminal project and the Border by biogas instead of natural gas for a month. an understanding about the locations January – SEE PAGE 20 Guard’s new LNG-fueled OPV Turva, The resulting cut in carbon dioxide emissions of the LNG terminals. Tahkoluoto, Pori, is selected achieve visibility at SuomiAreena exceeds 140,000 kilos during the month. The highest gas consumption as the location for Finland’s A total of €100,000 in grants are (Finland Arena), a high-profile Skangass signs an LNG peak of the year seen on January first LNG terminal. given out to 10 researchers and discussion forum on Finland’s A biogas and natural gas filling station supply agreement with the Italian 24, 2014 (185 GWh/day). – SEE PAGE 22 students from the Gasum Gas Fund. current and future challenges. is opened in Lielahti, Tampere. energy company Eni.

February April June August October December

Gasum acquires the majority (51%) Gasum and Huntsman sign an Skangass supplies LNG with Gasum’s "Biogas to fuel road transport" Gasum launches the A subsidiary of Manga LNG Ltd, of the LNG distribution business agreement on the supply of a four-year contract to propel concept is nominated for the Energy annual innovation competition, Manga Terminal Ltd, makes an investment from the Norwegian Lyse Group. natural gas. Gasum will construct the Finnish Border Guard’s new Initiative of the Year award in an annual themed this year on decision on the Tornio LNG terminal. Gasum becomes the largest LNG a 12 kilometer connecting pipeline offshore patrol vessel, OPV Turva. competition organized by the Tekniikka & Talous cleaner road transport. The project partners comprise Outo- player in the Nordic countries. for the delivery of gas magazine specializing in industry issues. – SEE PAGE 30 kumpu, SSAB, EPV Energy and Skangass. from the Pori LNG terminal. Gasum joins the Inspired in Finland cooperation program launched Gasum sells its Estonian local distribution Skangass opens an LNG Skangass and North European Oil Trade Juha Rantanen is by the Savonlinna Opera Festival company to Alexela Energy. This arrangement terminal in Lysekil, Sweden, (NEOT) agree on a supply contract for LNG appointed to chair the Gasum for collaboration between culture is part of Gasum’s strategy of focusing on further strengthening the to NEOT’s coming time-chartered vessels. Supervisory Board. and business. the development of the gas market in Finland Nordic LNG infrastructure. and the Nordic countries. – SEE PAGE 22 The "Petrol for the price of biogas" campaign wins the Energy The Swedish authorities grant Skangass category of the European Excellence the permit to build an LNG terminal Awards, with Gasum the only Finnish in the Port of Gävle. company to achieve this. – SEE PAGE 22

10 GASUM'S YEAR 2014 GASUM'S YEAR 2014 11 STRATEGY STRATEGY

The purpose of our new strategy is to 1. We promote sustainability MEGATRENDS stimulate growth in our business areas 2. We provide competitive AND CHANGE IN OUR SUSTAINABLY and strengthen our ability to deliver gas solutions solid financial performance, value cre- 3. We develop a Smart Gas System OPERATING ENVIRONMENT ation as well as improve profitability. 4. We create a new Gasum The changes in our operating Mission and vision clarified environment are best described by TOWARD A NORDIC These MWBs focus on Gasum’s the following three megatrends: In order to respond to the changes in advocacy, customer work, building our operating environment brought the gas system and utilizing it as effi- about by megatrends such as resource ciently as possible, and enhancing our GAS ECOSYSTEM wisdom, consumer power and digi- own competencies and wellbeing. tal revolution, we have redefined­ the Gasum mission and vision and re- Values determined together Our operating environment has changed dramatically in the past few years. newed our strategy. The new strategy with Gasum personnel The Skangass acquisition made and will continue to make Gasum an even was presented to Gasum personnel To create a strong value foundation in January 2015. for strategy implementation, we also Resource wisdom more prominent player in the Nordic gas sector. We will carry on our work Our mission is ‘Cleaner energy revised our values to reflect our cur- Population growth and climate through efficient gas solutions’ rent operating environment. Our new toward change with our new strategy setting the core goal of providing change call for increased efficiency and our vision ‘The Nordic gas eco- values were formulated on the basis in resource use. Improved energy customers with intelligent and competitive gas solutions. system as a promoter of sustainable of a survey among our entire person- efficiency and circular economy development'. nel and summed up in a single value play an important role. The Nordic gas ecosystem consists proposition: of activities relating to gas in Norway, M AS A PROMOTE STE R OF Sweden and Finland. Gasum is at ”Purposefully and responsibly OSY SU EC ST the core of the ecosystem, but there moving towards new opportunities.” AS AI G NA are also players who can accomplish IC B D LE more by doing things together than Creating the Nordic gas ecosystem R D O E any individual player could do alone. will call for the identification of new N V E E The ecosystem evolves over time and opportunities and determined effort to H L T O generates new opportunities for the utilize the opportunities. Responsibil- : P N M players involved. ity encompasses corporate responsibil- O E I N Consumer power S ity as well as responsibility on the part I T V . Our strategy consists of each individual employee has. As consumers, individuals and four Must-Win-Battles Gasum aims at being an exemplary communities can and want to decide We will work toward our vision of a player from the economic, social, on their type of energy production Nordic gas ecosystem by implement- safety and security as well as environ- and control their energy consumption, ing our strategy to provide customers mental perspective alike. In our com- which leads into an increase in the with intelligent and competitive gas pany everyone is treated fairly. Every energy technologies available and the solutions. To implement our strategy Gasum employee also acts responsibly diversification of energy production. in practice, we must succeed in four in their work toward customers, co- Must-Win-Battles (MWBs): workers and other stakeholders.

M . Digital revolution IS S S N IO IO N T The energy sector is also shaped : LU We provide our customers CL O by mobile technologies and EA S S with intelligent and NE GA the rise in digital services. R E T NER CIEN competitive gas solutions. GY THROUGH EFFI

12 GASUM'S YEAR 2014 GASUM'S YEAR 2014 13 GASUM'S BUSINESS ENERGY TRADE

Gasum's business

In 2014 Gasum operated in four business areas, promoting the sales of natural energy gas solutions ENERGY TRADE in different customer segments. SERVES

Natural energy gas year 2014: Gas consumption was decreased by warm weather, inexpensive spot-priced electricity as well as cheap coal and emission allowances. ENERGY TRADE LNG

Sourcing and sales of natural energy gases Sourcing and sales The annual consumption of natural gas gas still remains an important fuel for totaled 29.3 TWh in 2014, down 12 per district heating and related electricity Biogas and transport solutions Storage YEAR 2014 cent on the year before (33.2 TWh). In production in Finland at a 22 per cent Trading services Distribution terms of climate, 2014 was the second- market share. • The 40th anniversary of natural gas warmest year ever recorded in Finland, Factors affecting the competi- in Finland was celebrated with cus- Energy Trade sources and sells natural The LNG business, i.e. the Gasum and this also had a major impact on tiveness of natural gas include the tomers in February. The total volume energy gases and provides wholesale customers subsidiary Skangass, sources, stores, sells the annual consumption of natural gas. multiple-stage natural gas supply con- of natural gas imported to Finland with energy trading services. The business also and distributes liquefied natural gas. tract negotiations launched in autumn by the end of 2014 amounted to covers biogas and transport solutions. 2013 as well as domestic regulation 109.5 billion m3. and tax reforms. • A working group appointed by — PAGE 15 — PAGE 20 Gasum is working the Finnish Ministry of Employment Downturn in natural gas and the Economy began preparations actively to improve price development in autumn for the reform of the Natural Gas the competitiveness The price is linked to the price of heavy Market Act and the opening up of natural gas. fuel oil and imported coal as well as the of the natural gas wholesale and domestic market energy price index. retail markets. The strongest role in natural energy • Annual consumption of natural The price level of electricity in the gas price development is played by gas totaled 29.3 TWh, down Nordic market was quite low, which the price of heavy fuel oil. The slump 12 per cent on 2013 (33.2 TWh). reduced combined heat and power in the price of crude oil that began in • Biogas production capacity increased, (CHP) production based on natural summer 2014 could also be seen in and 33.9 GWh of biogas was injected ENERGY SERVICES TRANSMISSION SERVICES gas. At the same time the competitive- the price of natural gas toward the end into the network. ness of natural gas in this traditional of the year, and in January 2015 the Natural energy gas Gas network development and maintenance sales and solutions usage segment was also reduced due natural gas energy charge went down Biogas upgrading and network injection to the low world market pricing of to a level 12 per cent below that a year Appliance sales emission allowances and coal as well earlier. According to Gasum’s forecast, as the manifold increase in natural gas the clear downward trend in natural gas Energy Services provides households, Transmission Services is responsible for gas trans - taxation that has taken place over the energy charge will persist throughout restaurants and other enterprises with natural mission to customers in the transmission network, past five years. Nevertheless, natural the first half of 2015. gas and biogas as well as gas solutions network development and maintenance, and network for heating and cooking and also sells gas safety. The business also covers biogas upgrading appliances. and the Finngulf and Balticconnector projects.

— PAGE 24 — PAGE 26

14 GASUM'S YEAR 2014 GASUM'S YEAR 2014 15 ENERGY TRADE ENERGY TRADE

Monthly consumption of natural gas (TWh)

Reliable long-term 5 2013 (Total 33.2 TWh) 2014 (Total 29.3 TWh) cooperation with 4

customers. 3 Source: Gasum

2

1

0 Jul Feb Oct Apr Sep Jan Dec Jun Mar Nov Aug May

Natural gas consumption in Finland (TWh)

50 Combined district heat and 40 electricity production Industry 30

NATURAL GAS AS PART OF Source: Gasum THE BIOFUEL PRODUCTION CHAIN 20

Alongside the more traditional energy use of natural gas, it is 10 increasingly used also as a raw material. Hydrogen is produced 0 from natural gas in four locations in Finland. Around 4 TWh of 2011 1981 1991 1 974 1976 1977 1975 1978 1979 1992 1987 1993 2013 1997 2012 1982 1983 1995 1989 1985 1994 1996 1999 1986 1998 2001 2010 1984 1990 1988 2014 1980 2007 2002 2003 2005 2006 2009 2004 2008 natural gas is used in these processes each year, and this gas 2000 usage segment is anticipated to continue its growth. Demand The decreasing price trend has also for hydrogen has been boosted particularly by the production of Electricity generation District heat generation Sales of natural gas inspired more and more natural gas high-quality transport fuels. by energy source in 2014 by energy source in 2014 by product in 2014* customers to consider the utilization The latest example of this is the Lappeenranta biorefinery of the situation by hedging the prices of UPM-Kymmene where the production of biodiesel was launched of their future natural gas procurement in late 2014. Crude tall oil, a residue of pulp production, is used as using Gasum's price hedging products. the raw material for biodiesel. Consequently, trade in hedging prod- ucts for the coming years was particu- larly active in 2014. Many natural gas customers have also begun to use the A working group was appointed by the autumn. Reliability, ease of coop- Gasum Report Service that provides the Finnish Ministry of Employment eration and professional competence current information about factors affect- and the Economy to prepare for the of our staff were among issues in ing the price of natural gas in the form reform of the Natural Gas Market Act Gasum's operations appreciated by of market analyses and price forecasts. and the opening up of the natural gas respondents. Gasum was rated highly wholesale and retail markets to com- for timely provision of information Natural gas 8% (2013: 10%) Natural gas 22% (2013: 26%) Annual and monthly product 89% Development of the gas market petition. Gasum is actively involved in and attendance to customer relation- Nuclear power 35% (33%) Wood and other bio 31% (29%) Small consumption tariff including spearheading Gasum’s operations the process to influence the drafting of ships. Criticism was voiced about Hydropower 20% (19%) Coal 24% (26%) Gasum’s own consumption 1% It is stated in Finland's Energy and Cli- the new Act. the high price of natural gas and the Biomass 17% (17%) Peat 13% (13%) Gasum Plussa and mate Roadmap 2050, published in Octo- energy taxation of natural gas, which Coal 13% (15%) Secondary heat 3% (2%) secondary market trading 6% Reliable long-term cooperation ber, that the use of natural gas is favored has increased manifold. Customers Peat 5% (5%) Oil 3% (2%) Open delivery 4% by the retaining of infrastructure for the with customers find Gasum's efforts to develop the Wind power 2% (1%) Other 4% (4%) transmission of fuels such as biogas. The A customer relationship survey with LNG and biogas markets important and *Due to change in reporting, Waste 1% (1%) 2013 data is unavailable manufacture of biofuels also requires a large number of customers respond- hope Gasum will continue to actively

hydrogen produced from natural gas. ing was commissioned by Gasum in provide information about these issues. Source: Finnish Energy Industries Source: Finnish Energy Industries Source: Gasum

16 GASUM'S YEAR 2014 GASUM'S YEAR 2014 17 ENERGY TRADE: BIOGAS AND TRANSPORT SOLUTIONS ENERGY TRADE: BIOGAS AND TRANSPORT SOLUTIONS

Foundation laid – now it’s time to build upwards I got the opportunity to take up a fantastic ence when switching from natural gas to bio­ challenge in autumn 2014 and become the gas — not even in their invoice. Strong growth head of biogas and transport solutions at Gasum is committed to the sustained Gasum. I couldn't think of a nicer task. A development of gas vehicle use. Gas ver- solid foundation was laid in previous years for sions are available in more and more car growth in biogas and road fuel gas, and now models, and there is hardly any price differ- in biogas it’s time for us to build upwards at great speed. ence between petrol- and gas-fuelled cars. The consumer is at the core of our busi- In addition, the volume of gas bought for ness. Biogas solutions must be environmen- private cars at Gasum’s public filling sta- Biogas is making an entry on Finland’s roads. Biogas already tally friendly, diverse, easy and cost-effective. tions increased by 20 per cent on the year accounted for 40 per cent of the total sales of gas at Gasum’s This must be achieved for road transport, before. This is a good path to follow. industrial and residential customers alike. In public filling stations in 2014. At the same time biogas solu- part we’ve already succeeded: in many cases JUKKA METSÄLÄ tions are gaining ground in heating and industrial processes. the consumer is not able to notice the differ- Head of Biogas and Transport Solutions

GAS VEHICLE FILLING STATIONS LIMINKA Biogas reached many milestones in Production capacity increases Gasum filling station (number of stations) 2014. During the year, biogas­ was The production capacity for Gasum bio­ Other operator's filling station included in the selection of every gas increased considerably toward the Other operator's filling station one of the 24 gas filling stations in end of the year as the new biogas pro- under planning/construction Finland. There was a 50 per cent duction and upgrading facility of Gasum GASUM INVESTS IN THE increase in biogas volumes at Gasum and LABIO was opened in Kujala, Lahti, FILLING STATION NETWORK filling stations on the year before – Finland. Its annual production potential GASUM'S BIOGAS already two-fifths of all road fuel of 50 GWh means a major increase, as The development of the filling sta- PROJECTS AND PARTNERS tion network is one of Gasum’s key 1. KSS Energia and Kymen Bioenergia gas sold at Gasum’s public stations the total amount of biogas injected into PIETARSAARI was biogas in 2014. the Gasum network in 2014 was around objectives. In 2014 Tampere received 2. Helsinki Region Environmental 34 GWh. In addition to Kujala, Gasum another filling station, opened in Services (HSY) produces biogas at Mäkikylä, Kouvola, early autumn in the Lielahti district. 3. LABIO JEPUA FINLAND and Suomenoja, Espoo, where a record At the moment there are 24 gas 4.–5. Biovakka Suomi We are VAASA production volume was reached in 2014. filling stations in Finland, with 18 6. Joutsan Ekokaasu planning 35 new The development of the biogas of these owned by Gasum. 7. MetsäFibre and Helen filling stations in market will open up opportunities for In late 2014 a payment system 8. KSS Energia key traffic locations. the introduction of new production reform took place at the stations. In addition to the Gas Card, customers Operational methods. As well as from biodegrad- LEPPÄVESI able waste, biogas can be produced can also use Finnish debit and Visa Under planning Biogas can now be utilized in from material such as grass growing Electron cards as well as MasterCard KITEE a variety of industrial processes, on fallow land or wood obtained from and Visa credit cards. property heating as well as gas cook- forest industry by-products. Gasum Gasum aims to expand the net- ers in home kitchens. This change has plans for a facility using fallow work considerably in the coming 6. JOUTSA can also be seen within Gasum. In grass as raw material and producing years: a roadmap is being designed autumn 2014 our biogas and trans- roughly twice as much biogas a year as for 35 new filling stations in key traf- 2 TAMPERE port solutions merged into a single the Kujala facility in Lahti. fic locations around Finland. Biogas IMATRA business unit. Gasum has also looked into the and, in the future, liquefied natural LEMPÄÄLÄ JOUTSENO 7. Interest in cost-effective biogas construction of a biorefinery produc- gas (LNG) infrastructure solutions LAPPEENRANTA solu­tions is increased by deeper ing wood-based biogas (bio-SNG) in will help increase the filling station LAHTI 3. KOUVOLA environmental­ awareness among Joutseno, Finland, in cooperation with network outside the gas pipeline net- 1. 8. RIIHIMÄKI consumers as well as stricter emission Helen and Metsä Fibre. Bio-SNG could work. This development is also sup- FORSSA targets. When Gasum switched all be transmitted along the gas network, ported by the goal of making biogas 5. VEHMAA HYVINKÄÄ MÄNTSÄLÄ HAMINA Helsinki gas cookers to biogas for Sep- for example, the Helen Vuosaari power more common as a fuel for public KOTKA tember 2014, the feedback received on plant in Helsinki. The facility’s envisaged transport in urban areas. 4. PORVOO TURKU the campaign was highly positive. annual capacity is 1,600 GWh. LOHJA 2 2. 6 GREATER HELSINKI

18 GASUM'S YEAR 2014 GASUM'S YEAR 2014 19 LNG LNG

SKANGASS TAKING THE LEAD IN LNG DEVELOPMENT SKANGASS ENSURES SAFETY IN LNG DELIVERY Gasum acquired a majority of the LNG distribution business of the Norwegian company Skangass in spring Skangass delivers LNG to shipping customers from road tanker to ship, from terminal to ship or from ship to ship – whichever is 2014. LNG helps achieve considerable emission cuts the smoothest and best solution for the customer. Skangass cur- in a cost-effective manner. rently has charter parties for two LNG carriers and operates more than 20 LNG road tankers, with new stock added where necessary. One of the two Skangass carriers and the specialized bunker ship Coralius to be delivered in spring 2017 can be used for bunkering, Gasum pursued its long-term lique- Outokumpu, SSAB and EPV Energy i.e. refueling, LNG directly from ship to ship at sea. The bunkering YEAR 2014 fied natural gas (LNG) strategy by in an LNG terminal project for Röyttä, vessels improve customers’ access to LNG and reduce the need acquiring a 51 per cent holding in Tornio, Finland. for ships to visit ports. The ship-to-ship delivery option is an es- • Gasum subsidiary Skangass offers the Skangass LNG business from the sential element in the development of the LNG distribution infra- competitive and environmentally Norwegian Lyse Group. Operating in Creating a pan-Nordic market structure, and the vessels used by Skangass provide customers friendly LNG for shipping, industries energy, infrastructure and telecom- The Finnish, Norwegian and Swedish with LNG at sea safely and flexibly. and heavy-duty road transport. munication, Lyse maintains a 49 per LNG markets were unified geographi- • The CEO of Skangass is Tor Morten cent shareholding in Skangass. cally by the acquisition. Skangass is Osmundsen, and the company's Gasum and Skangass have solid actively developing the Nordic LNG Board of Directors is chaired by experience in the LNG market, with infrastructure, and the pan-Nordic Gasum CEO Johanna Lamminen. Gasum involved in the LNG business market facilitates the development LNG offers option for cleaner maritime transport • Skangass had 44 employees in 2014. since 1996, while Skangass, a com- of sourcing and distribution services, • Skangass supplied a total of 284,000 pany established in 2007, launched improves the efficiency of the logistics Skangass is a leading supplier in the Nor- The new boost to the infrastructure will tonnes (or 3.9 TWh) of LNG in Finland, its LNG business in 2011. chain and increases the total storage dic LNG markets. The company provides enable the increased frequency of LNG- Sweden and Norway, up 35 per cent The transaction resulted in the capacity available for LNG. customers with LNG for shipping, industrial fuelled cargo and passenger ships in the Bal- on the year earlier. transfer of Gasum’s LNG business, The overall competitiveness of LNG and heavy-duty land transport needs. tic and North Sea, which will result in emis- such as the Porvoo production facility is improved by the stricter emission LNG must be a competitive and well- sion cuts in maritime transport in particular. under Skangass. The Skangass pro- limits that entered into force in Janu- functioning way of reducing environmen- We also believe firmly in the rise of environ- duction facility in Risavika, Norway, ary 2015 in areas such as the Baltic and tal emissions from energy use. For LNG to mental perspectives in the fuel choices made is owned by Lyse, but Skangass has the North Sea. Using LNG helps cut reach a strong position in the Nordic energy by heavy-duty road transport operators. a long-term supply contract concern- carbon dioxide emissions by around 25 portfolio, the infrastructure must be in per- Several truck manufacturers have already Skangass is ing the use of the facility. The Skan- per cent compared with heavy fuel oil. fect condition. LNG is a way of extending responded to the new market situation by actively developing gass Øra terminal in Norway as well LNG does not contain sulfur or heavy the environmental benefits of gas to us- launching gas-fueled heavy-duty vehicles. as the Lysekil terminal in operation metals or generate harmful fine particu- ers outside the gas pipeline network, and By using LNG, enterprises make a choice the Nordic LNG and the Gävle terminal being planned late emissions when used. therefore we’ll be investing strongly in the they will benefit from right away today – infrastructure. in Sweden were all transferred un- The switch of energy source from TOR MORTEN OSMUNDSEN development of the LNG terminal network and also tomorrow as the next revolution in der the new company. Skangass is traditional fuels to LNG also opens up Chief Executive Officer, Skangass AS and seamless LNG delivery solutions in the the gas sector – liquefied biogas (LBG) – is also constructing an LNG terminal the opportunity for further positive Nordic countries in the coming years. already just around the corner. in Tahkoluoto, Pori, Finland. In ad- steps: liquefied biogas (LBG) can be dition, Skangass is partnering with used in the same way as LNG.

20 GASUM'S YEAR 2014 GASUM'S YEAR 2014 21 LNG INFRASTRUCTURE LNG INFRASTRUCTURE

Several Skangass terminal LNG terminal planned projects opened for Finland for Gävle, Sweden SKANGASS and other Nordic countries In August 2014 Skangass received LNG INFRASTRUCTURE The Gasum subsidiary Skangass is permission from the County Admin- TORNIO MANGA LNG IN NORDIC COUNTRIES actively developing the Nordic and istrative Board of Dalarna to construct TERMINAL CONSTRUCTED Finnish LNG infrastructure. The an LNG terminal. The planned LNG AS A JOINT PROJECT Tahkoluoto LNG terminal constructed terminal is an important element in in Pori, Finland, will be the third the expansion of the LNG infrastruc- An LNG import terminal as well as an effi- Skangass terminal in the Nordic ture in Sweden. The investment deci- cient supporting logistics chain is being con- countries. In 2014 a terminal of the sion will probably be made in 2015. structed in Röyttä, Tornio, Finland, by Manga same capacity was opened in Lysekil, The terminal is developed in coop- Terminal Ltd. The company is owned by Ou- Sweden, where natural gas is supplied eration with the Port of Gävle, which tokumpu, SSAB, Skangass and EPV Energy. by Skangass directly to the customer, will invest in infrastructure construc- Once completed, the Tornio LNG ter- via a connecting pipeline. LNG is also tion in the port area. minal will be a regional supplier of LNG delivered from the terminal to other for industrial and shipping customers in local industrial facilities by LNG road Skangass LNG supply efficiency Northern Finland as well as Northern Swe- TORNIO LNG TERMINAL tankers, and also supplied to ship- increased by production facilities den while also diversifying the Finnish gas ping customers. Skangass has invested Skangass also has a long-term sup- and fuel market in Northern Finland. The • Joint project of Manga LNG Ltd, Outokumpu, SSAB, EPV Energy more than 85 million in the terminal. ply contract with the Norwegian Lyse terminal tank capacity will be 50,000 m3, and Skangass Group concerning the use of the LNG and the project is estimated to cost around • Storage capacity 50,000 m 3 The Øra LNG terminal in Norway production plant located in Risavika, ¤100 million. The company has received • Construction started Located in Southern Norway, the Øra Norway. Operational since 2011, the around ¤33 million in LNG terminal invest- • Due for completion in 2018 LNG terminal has a storage capacity LNG plant has a storage capacity of ment support from the Finnish Ministry for of 6,500 m3. The terminal design al- 30,000 m3 and production capacity of Employment and the Economy for the con- lows the annual throughput of around 300 kilotonnes. Skangass also has a struction of the terminal. The terminal will 100,000 tonnes of LNG. Most of the small 20-kilotonne LNG production be supplied by Wärtsilä Corporation. SWEDEN LNG distribution to customers takes facility opened in 2010 in Porvoo, The construction project is esti- place by LNG road tanker over dis- Finland, which has a storage capacity mated to provide 260 full-time equiva- FINLAND tances up to 350 kilometers. One-third of 2,000 m3. lents of employment and, once opera- of the gas can be distributed directly tional, the terminal will employ 7 people via the connecting pipeline to indus- directly and around 30 people indirectly. trial customers in the local area. PORI LNG TERMINAL • Storage capacity 30,000 m 3 NORWAY GÄVLE LNG TERMINAL • Construction started Building Finland’s first LNG terminal in Pori • Due for completion in 2016 • Storage capacity 30,000 m 3 I’m the project manager in Finland’s first ever LNG It’s been estimated that the use of LNG in • Under planning terminal construction project, which is making maritime transport and industry has particu- rapid progress on the western coast of Finland in larly high market potential in the Satakunta the Tahkoluoto chemicals and oil harbor in Pori. area. The Pori terminal will be able to serve Our project also involves the creation of an effi- the entire Western Finland region. The first RISAVIKA LNG PRODUCTION PLANT cient logistics chain and a natural gas pipeline con- Finnish LNG terminal is estimated to be com- IN LYSE’S OWNERSHIP PORVOO LNG PRODUCTION FACILITY necting the terminal with an industrial area. The pleted as soon as in the autumn of 2016. • Storage capacity 30,000 m 3 • Storage capacity 2,000 m 3 connecting pipeline will serve the local M20 Indus- The Skangass ’safety first’ policy plays a key • Production capacity 300 kilotonnes ØRA LNG TERMINAL • Production capacity 20 kilotonnes • Operational since 2011 • Operational since 2010 trial Park as well as other Skangass customers. role and has been taken into account in the design • Storage capacity 6,500 m 3 The project’s total investment amounts to phase and the various construction stages. It will • Operational since 2011 around ¤80 million. Energy support at¤ 23 million also be the guiding principle in commissioning LYSEKIL LNG TERMINAL was granted for the terminal project by the Finnish and operation. Safety regulations are stringent: • Storage capacity 30,000 m 3 Ministry for Employment and the Economy. This our goal is zero accidents. The site employs 40 • Operational since 2014 support enables Skangass to construct a termi- to 200 people daily. Following completion, the nal for the Satakunta region­ through which envi- operations of the terminal will be controlled and STANISLAV LYSAK ronmentally friendly and sulfur-free energy will supervised from a central control room. Project Manager, be provided for shipping and Finnish industries to The employment effect of the construction Pori LNG terminal replace fuel oil and liquefied petroleum gas. At the project is estimated to be 250 man-years. Once op- same time, Skangass is creating alternative sourc- erational, the terminal will employ around 10 people ing channels for industries using gas. directly and around 50 other people indirectly.

22 GASUM'S YEAR 2014 GASUM'S YEAR 2014 23 ENERGY SERVICES ENERGY SERVICES

We are actively ADVANCED developing hybrid solutions combining renewable energies ENERGY SOLUTIONS with gas.

Gasum Energy Services offers energy-efficient gas solutions. Clean-burning natural gas, Finnish biogas and LNG enable Our customers’ needs are becoming more diverse the development and introduction of new types of technical concepts – and so are the solutions we offer as emission targets are becoming stricter. Our customers’ needs have become clearly I believe active listening and fresh more diverse in recent years. Individual, tai- ideas are the recipe for success. We are lored solutions have also arrived in the en- determined to develop products and ser- ver to gas, appliance installation, Hybrid solutions ergy sector. At Gasum Energy Services we vice solutions that our customers need YEAR 2014 maintenance and servicing as well accessing the market are making every effort to be able to con- and appreciate. Energy efficiency, sup- the construction of new distribution Energy Services is also actively devel- tinue to offer open-minded energy solutions ply security, scalability and low emissions • Distribution sales of biogas became networks are the strengths of Energy oping heating solutions such as hy- for industrial, property and home needs. are what natural energy gas solutions are possible for all customers connected Services in the new market area. brid solutions, that com­bine renewa- We are focusing even more on customer about. At the same time renewable and to the distribution network. ble energies with gas. In practice these relationships and working together with our resource-wise Finnish biogas adds to our • The number of Energy Services cus- Biogas distribution may include solar panels, collectors customers to find the best solution to every energy palette. Building on gas is sustain- tomers increased despite the chal- sales launched or heat pumps acting as the primary challenge. To support this aim, we changed able – today and tomorrow. lenging market situation. Biogas enables the development of a source of energy, with gas providing our approach in 2014 and introduced cus- • The development of hybrid solutions new market. In 2014 the distribution the system with the additional energy tomer group managers in our organization to PETRI NIKKANEN was at the core of our activities. sales of biogas became possible for needed for periods of low supply of sharpen our service delivery. We are now able Head of Customer Relationships • Energy Services was involved in the all customers connected to the dis- renewable energy. In 2015 a new type to focus more on understanding the operating and Sales, Energy Services construction of an ecological resi- tribution network. In the autumn our of solution will be launched in the environment of gas users. dential area in Sundsberg, Kirkko­ biogas campaign allowed 30,000 Hel- market, utilizing different sources of nummi, Finland. sinki kitchens to use clean biogas to heat and minimizing the quantity en- fuel their cookers. Housing companies ergy purchasing and losses. Hybrid solutions can also be Energy Services provides gas solu- utilized in heating, including the tions for a diverse group of customers Customer combination of geothermal heat and from industrial operators to restau- numbers increased gas. Gasum has built a district heat- HJK JUNIOR FOOTBALL TRAINING FACILITY HEATED WITH BIOGAS rants, households as well as housing ing plant for the seafront residential companies. in 2014 despite the area of Sundsberg, Kirkkonummi, The winter training opportunities of junior control and can also cope with subzero The role of Energy Services has economic recession featuring two gas-fuelled geothermal footballers improved dramatically when temperatures: this means temperature been transformed in recent years and tax solutions heat pumps and gas-fuelled con- a new air-supported indoor football facil- in the training hall can be lowered con- into a developer and provider of densing boilers. Any shortages in ity was set up in Töölö, Helsinki, in spring siderably during periods such as nights, energy-efficient and resource-wise unfavorable to gas. geothermal heat production during 2015. Used exclusively by HJK football club resulting in cuts in energy bills. solutions. Our business activities no winter will be automatically com- junior players, the dome is heated energy- In addition to the 2,500 HJK junior longer need to be limited to the area can already opt for biogas and Gasum pensated for by gas. The residents efficiently with environmentally friendly, footballers,­ the new indoor training fa- covered by the gas pipeline net- will install a remote-read housing will be able to enjoy an energy- 100 per cent Finnish Gasum biogas. cility can also be enjoyed by pupils from work either: new opportunities are company-specific meter at no expense efficient heating solution without Biogas is an excellent choice for the primary schools participating in HJK’s opened up by LNG in the Western- to the customer. Our online applica- having to worry about maintenance heating of a large facility. The heating afternoon clubs as well as kids attending Finnish energy sector once our LNG tion available later on will enable or servicing, as a 24/7 service with system enables speedy temperature the HJK football school. import terminal becomes opera- housing companies to monitor gas control room and on-call service is tional in Pori in 2016. The switcho- consumption almost in real time. included in the product package. Pictured here is the Valio Vantaa factory steam plant that uses natural gas to produce 12,000 MW of energy a year.

24 GASUM'S YEAR 2014 GASUM'S YEAR 2014 25 TRANSMISSION SERVICES TRANSMISSION SERVICES

Gas transmission network control system renewed

The gas transmission network control monitor any network leaks more efficiently, sys­tem was renewed in stages in sum - and calculate transmission capacities. mer 2014. The new system increases the Our central control room monitors capacities of natural gas control and of and directs gas network operations con- the transmission business. It also helps tinuously around the clock. The main ensure the functioning of gas transmis- task of the control room is to transmit ENERGY sion and response to new needs and, gas to customers with guaranteed supply therefore supports Gasum's strategic security and safety. objectives. The system became fully operational JANNE GRÖNLUND ON THE MOVE in October. We also launched online simula- Control Room Manager, tion that can be used to check gas quality, Transmission Services

Transmission services is responsible for transmitting gas to customers as well as maintenance and development of the gas network. The focus in NATURAL GAS TRANSMISSION NETWORK IN FINLAND 2014 was on improving operational efficiency. Measures related to biogas injection into the natural gas transmission network, such as biogas balanc- Gasum owns the Finnish transmission pipeline network and is responsible for gas transmission to customers. Natural gas is transmitted in underground pipelines laid GAS EXCHANGE LTD ing and certificate system maintenance roles, were also developed. at a depth of 1—2 meters. In addition to pipelines, the network consists of valve and compressor stations as well as pressure reduction stations located at delivery points The Gasum subsidiary Gas Exchange via which gas is delivered to customers’ networks. Natural gas has already been Gasum owns the Finnish gas transmis- Biogas Certificate Ltd operates an online marketplace imported to Finland for 40 years. YEAR 2014 sion pipeline network and is the trans- system launched for secondary market trading in mission network operator with system As part of the development of the gas natural gas and for Gasum’s short- • The gas transmission network responsibility for the Finnish natural market, Gasum has created a Biogas term products. control system was renewed. gas transmission system. The pipeline Certificate system. The system is In 2014 annual trading by Gas • A gas pipeline rerouting project was network is Gasum’s largest asset, and a available in the area covered by the Exchange amounted to 1,891 GWh, TRANSMISSION DISTRIBUTION COMPRESSOR UNITS PIPELINE PIPELINE completed in Santalahti, Tampere, major part of Gasum's personnel work Finnish natural gas network. Gas down 7 per cent on the year be- Imatra, Kouvola and Mäntsälä and the expropriation permit planned in pipeline maintenance tasks. users can obtain Biogas Certificates fore (2013: 2,035 GWh). The Gas Length 1,287 km Length 562 km Number of compressor units: 9 for a pipeline in Turku was given up. from the certificate system, denoting Exchange trading volume corre- Volume 289,202 m3 • Plans relating to the supply security Gas pipeline network that the gas used is environmentally sponded to 6.4 per cent Finland’s of natural gas were updated, and maintained regularly friendly biogas. total natural gas consumption (2013: extensive analyses of the impacts The overhaul of the automation 6.1%). The number of transactions of potential gas supply disruptions systems of the Imatra and Kouvola Expropriation permit for was 99,000 (2013: 101,000). The were conducted. compressor stations built in 1997 natural gas pipeline planned main reason for the smaller trading • The design of the Balticconnector was considered in 2014, and its pos- for Turku, Finland, given up volume was the mild weather prevail- FINLAND gas pipeline and the Southern Finnish sible implementation will be planned A decision has been made not to go ing in February and March 2014. TAMPERE LNG terminal continued. in 2015. ahead with the natural gas pipeline In Lithuania annual trading at • The Energy Authority launched the planned from Mäntsälä to the Turku the GET Baltic Gas Exchange co- IMATRA preparation of the regulation of High-quality biogas economic area. The construction of owned by Gasum totaled 1,013 GWh, transmission network activity for Biogas is injected into the gas network the pipeline would have required up 89 per cent on the first operat- the 2016—2023 regulatory period. from three facilities, located in Kou- sufficient volumes of natural gas ing year (2013: 536 GWh). This cor- KOUVOLA vola, Espoo and Lahti. For biogas to consumption along the route. Poten- responded to a 4.3 per cent share of HYVINKÄÄ the total gas consumption in Lithu- be transmitted in the network, it must tial customers have invested in other MÄNTSÄLÄ KOTKA have properties that meet the compo- forms of energy or made other produc- ania. GET Baltic employs a business sition requirements set for gas injected tion decisions. Any need for gas in model created by Gas Exchange Ltd LOHJA into the natural gas transmission net- small and medium-sized industries and a trading system developed in HELSINKI work. The quantity and quality of bi- and power and heat production can be cooperation with customers in Fin- ESPOO ogas as well as the biogas balance are responded to through LNG solutions land. GET Baltic is owned by Gasum monitored closely to gain information of the future. (34%), Lietuvos Dujos (34%) and RUSSIA about the volume of biogas available Amber Grid (32%).

and delivered to customers. TALLINN NARVA

ESTONIA 26 GASUM'S YEAR 2014 GASUM'S YEAR 2014 27 CORPORATE RESPONSIBILITY CORPORATE RESPONSIBILITY

Corporate responsibility at Gasum Promoting sustainable At Gasum corporate responsibility stems stakeholders: customers, political­ decision- from our reformed strategy, according to makers, students and the media­ as well as which we seek to promote sustainable de- our personnel. We provide a summary of velopment through efficient gas solutions our corporate responsibility themes in our development throughout our operations. Corporate re- Annual Report, and more in-depth informa- sponsibility issues were assigned to me tion can be found on indicators reported in at the beginning of the year. Responsibil- accordance with GRI G4 guidelines in our Corporate responsibility and sustainable development ity and sustainable development are also Corporate Responsibility Report. are closely linked with Gasum's business. Responsibility entails strongly connected with communications In line with our value proposition, we and marketing. are purposefully and responsibly moving corporate as well as each individual employee’s responsibility. Gasum has reported on corporate re- towards new opportunities. We create cleaner energy through efficient gas solutions. sponsibility issues in line with the Global Reporting Initiative (GRI) Guidelines since OLGA VÄISÄNEN 2010. In 2014 we redefined our corporate Director, Communications, responsibility­ themes by listening to our Marketing and Corporate Responsibility Gasum develops intelligent and com- the market expanding into the new of promoting sustainable develop- petitive energy solutions for industry, Nordic market, corpor­ate responsi- ment. Gasum aims to create, in coop- households and transport. Energy so- bility and safety become even more eration with customers and stake- lutions are an efficient way to reduce emphasized. holders, partnerships that enable the Methane emission of the total volume of natural gas delivered (%) Gasum’s greenhouse gas emissions emissions from transport, industry or efficient development of new natural by emission source in 2014* Toward carbon neutral society heat and power pro­duction and help energy gas solutions. 0.020 combat climate change. We also seek We are committed to responsibility­ Our responsibility work focus to constantly improve the environ- as regards our economic, social and is divided into four key areas. These mental impacts of our own activities. environmental activities. We believe were redefined and specified further With our operations diversifying and technology innovations are one way in 2014. 0.015

0.010 Focal areas of Gasum’s corporate responsibility Methane emissions from the transmission 0.005 and delivery system 46% (2013: 49%)

CO2 emissions from compressor stations 19% (19%)

0.000 CO2 emissions from 02 03 04 05 06 07 08 09 10 11 12 13 14 pressure reduction stations 5% (6%) Innovations In active cooperation Supply security Value Source: Gasum year CO2 emissions from in-house use and the future with society and safety chain of natural gas, 1% (1%) CO2 emissions from heating plants 28% (25%) Expansion and Openness, Safe use of gas Industrial active development of transparency and competitiveness * 2014: 59,378 t (2013: 64,370) Supply security of gas the gas market active dialog and preparedness to Supply chain Source: Gasum Diversification of gas Investments and respond to exceptional efficiency and infrastructure and tax footprint situations environmental expansion of gas use impacts Responsible Safety and security Heading toward the New business models employer of personnel Supplier and partnerships and partners responsibility transition into carbon Emission-reducing neutral society. solutions

28 GASUM'S YEAR 2014 GASUM'S YEAR 2014 29 INNOVATIONS AND THE FUTURE INNOVATIONS AND THE FUTURE

an annual competition organized by over the next two years and also have of Engineering Design and Production), the Tekniikka & Talous magazine that broader business potential. Mighty Eagle Peter Vesterbacka (Rovio specializes in industry issues. Entries were to be submitted by Entertainment), Board Member Jaakko the end of 2014, and 130 ideas for Lehtonen (Dodo) and, representing Transport use a theme of the increased transport uses of natu- Gasum, CEO Johanna Lamminen, Vice the innovation competition ral energy gases were received by the President for Strategy and Corporate In autumn 2014 we launched our sec- deadline. Ideas were welcomed in Relations Sari Siitonen and Business ond innovation competition, this time areas ranging from technical solutions Development Manager for Biogas and AIMING AT CUTS challenging innovators to develop new to service concepts or marketing to in- Transport Solutions Jussi Vainikka. environmentally friendly solutions for crease the use of natural energy gases, The competition will continue the transport use of natural energy gases. this time specifically in road transport. in spring 2015 with two workshops, The aim of the competition is to find The members of the jury were Chair- where the shortlisted ideas will be IN CARBON DIOXIDE and promote new natural energy gas man of Gasum Supervisory Board Juha taken further under the leadership of solutions that will help reduce emis- Rantanen, Professor Petri Parvinen the jury. The winner will be announced sions and increase the share of Finnish (Helsinki University and Aalto Univer- in June 2015, with an innovation prize and renewable energy in road trans- sity Department of Industrial Engineer- up to €100,000 available to the winning EMISSIONS port. The competition looks for new ing and Management), Professor Kalevi team. The jury may also decide to di- project ideas that can be implemented Ekman (Aalto University Department vide the prize between several teams.

The long-term goal of Gasum’s research and development (R&D) is to promote the transition into carbon neutral society. In the future, Gasum will be involved in solutions that play a role against climate change. These include switching to low-carbon fuels, production of bio- and waste-based fuels and providing of energy-efficient solutions to customers. Innovations for a cleaner tomorrow. Gasum is an active player in many R&D supported by grants Gas Engineering course in collabora- national research networks. The focal from Gasum Gas Fund tion with Aalto University. The course themes of our R&D can be divided un- We support national research, devel- is taught in English, and in autumn der three themes: opment and innovation every year 2014 it was reformed to cover the en- through our Gas Fund. The Gas Fund tire value network and supply chain RENEWABLE GAS is one of the special funds adminis- of the gas sector. The course provides Key areas in this theme include biogas tered by the Finnish Foundation for international students with new com- produced using anaerobic digestion, Technology Promotion (TES). In 2014 petencies in issues including liquefied its raw materials and pre-treatments, ten grants were given out from the natural gas and biogas technologies. wood-based biogas produced using fund, totaling €95,500. Gasum supports and commissions gasification (bio-SNG) and, in addi- thesis work relating to the gas sector. tion, the hydrogen gas economy. Research networks provide We offer several students fixed-term a channel to international research employment for the completion of ENERGY SYSTEMS AND Gasum participates in international their thesis. NEW OPPORTUNITIES OF GAS research with several organizations. Key areas in this theme are the flexibility In 2014 Gasum was a member of the Innovations for the future required in the use of renewable ener- European Gas Research Group (GERG) Gasum is maintaining active innova- gies, such as storage issues and changes and European Pipeline Research Group tion work. In 2014 ideas were de- in energy systems, such as the transfor- (EPRG). We also participate in the work veloped in four extensive in-house mation caused by new technologies. of the International Gas Union (IGU). innovation workshops, in addition to which multiple in-house innova- USES OF GAS AND ENERGY EFFICIENCY Cooperating with universities tion initiatives were collected and Key areas in this theme include the and training future gas experts processed. Gasum’s sustained efforts energy-efficiency issues and envi- Gasum is developing Finnish and in to develop the biogas business were ronmental impacts of the gas supply part also international gas expertise by recognized as the development of the chain and energy efficiency in the end participating in university education. biogas concept was nominated for the use of energy. Every other year we organize a Natural Energy Initiative of the Year award in

30 GASUM'S YEAR 2014 GASUM'S YEAR 2014 31 IN ACTIVE COOPERATION IN SOCIETY IN ACTIVE COOPERATION IN SOCIETY

STAKEHOLDER COOPERATION AND ENERGY MARKET

Gasum is involved in the development of the Finnish energy sector, and participates actively in the Finnish energy policy debate. Gasum's interest representation aims to influence political decision- making so that details that are important for our business are taken into consideration in the development of the operating environment.

In 2014 Gasum aimed to participate Main messages for post-election Our aim is for the next Government ADVANCING SOCIETAL DIALOG actively in the formulation of the Government Program Program to safeguard the status of gas, Energy and Climate Roadmap 2050 of In the autumn our interest representa- because gas and gas infrastructure The transformation taking place in the energy sector means that active societal debate the Finnish Ministry of Employment tion focus was on preparing to influ- play a key role in national sustainable is needed on various forums. Energy price has a direct impact on the competitiveness and the Economy. This was a success, ence Finland’s post-election Govern- energy and transport policies as well of Finnish industry, while challenges to cost-effective energy production are posed and now the role of gas is stated in ment Program. Gasum determined the as competitiveness. the Roadmap as follows: following as its main messages to the by stricter emissions targets. How did we get here — and what is the next step? ”The use of natural gas must be Government Program negotiators: Natural gas, biogas secured during the period of transition 1. Incentives for using gas and other and LNG play key roles Christer Paltschik: Heading for structural nology, but the biogas market is still in its in- trend, which will mean a lot of work to be toward lower-emission technologies. low-emission fuels must be created Natural gas, biogas and LNG play key change toward sustainable development fancy. An important role during the transition done in corporate relations. Burning natural gas produces fewer through taxation. roles in the EU’s alternative transport I first gained experience in the gas sector as a into carbon neutral society is also played by Our first big challenge is already around greenhouse­ gas emissions than burn- 2. The development of LNG and fuels infrastructure directive completed student, when I got to take part in the design of natural gas – a fuel that burns cleanly and ef- the corner: Finland’s parliamentary elections ing coal or oil. The use of natural gas biogas infrastructure and market last year. Finland is currently develop- the Finnish gas network. I was also involved in ficiently. Utilizing the gas infrastructure is a in spring 2015 and the formation of the post- is justified because of its suitability must be supported in a sustained ing the transport fuel distribution sys- the network expansion phase that took place in major opportunity in the structural change to- election Government will turn the spotlight on to a variety of purposes and because manner to enable the diversification tem in accordance with the directive. the 1980s. At the end of the decade I joined the wards renewable, intelligent energy solutions. energy issues. For example, taxation should be it maintains the infrastructure for the of the energy system and improve- By taking efficient national action to Neste Gas Group and eventually Gasum, which reformed for stronger steering towards the use transfer and use of biogas and bio- ment of supply security. support the demand for vehicles run- was established as a Neste subsidiary in 1994. With a track record of decades in the gas busi- of low-emission fuels – without reducing the based synthetic natural gas. At the 3. The compatibility of local and na- ning on low-emission fuels as well as Our sector has undergone tremendous ness and more than 20 years of this with Gasum, competitiveness of Finnish industries. same time, it must be ensured that the tional energy and climate objectives infrastructure build-up, Finland’s next changes over the decades. Energy has be- Christer Paltschik retired in spring 2015. His last Natural gas solutions bring many op- lifespan emission balance of natural must be ensured through improved Government will be able to achieve come totally politicized: the debate on energy role in Gasum was Vice President, Corporate Re- portunities into this equation. In addition, gas and all other fossil fuels is good.” national coordination. considerable cuts in transport carbon policy started first, and perspectives including lations, Communications and Marketing. LNG as a low-sulfur fuel and 100 per cent 4. The potential of gas must be employed dioxide emissions as well as fine partic- environmental ones have now emerged along- Finnish biogas as a road fuel gas are exam- fully in transport. National distribu- ulate and other local emissions that are side it. This takes place against the backdrop Juha Ala-Huikku: Emission targets and ples of new alternatives that help reconcile tion infrastructure promoting the use a problem particularly in urban areas. of increased environmental awareness, which competitiveness can be reconciled ambitious emission targets with ensuring a We seek to ensure of gas as a road transport fuel must Through our interest representation has made it apparent that a reform is needed The gas sector is facing an interesting level playing field for the industry. be created. Vehicle taxation must be we have participated actively in the in the structure of energy production. situation: overall there are several chal- the desirability of gas supportive to low-emission fuels. drafting of the new Natural Gas Mar- I am, however, confident about the future lenges, with each one of these being de- Juha Ala-Huikku has worked in the Strategy and and awareness of its ket Act and the regulatory framework. of gas: we have the opportunity to increase manding in their special way. I believe the Corporate Relations unit since autumn 2014. He opportunities. We have raised the above themes in This advocacy will be continued ac- the use of biogas. We already master the tech- politization of energy will continue as a joined the unit from Transmission Services. our discussions with societal actors. tively in 2015 as well.

32 GASUM'S YEAR 2014 GASUM'S YEAR 2014 33 IN ACTIVE COOPERATION IN SOCIETY IN ACTIVE COOPERATION IN SOCIETY

Age distribution (permanent employees, %) Number of summer trainees (persons)

50 50 Responsible employer 46 40 40 39 35

Gasum aims to be a respected and attractive employer. The com- 30 30

pany is going through major changes as a workplace environment 20 20 as well as in terms of its business areas. Gasum's organisation must operate even more efficiently and employees' competencies 10 10 must be enhanced continuously due to the changes taking place 0 0 in the operating environment. 2012 2013 2014 2012 2013 2014 25 or under 26—40 41—55 56 and older

The most important events during regular. We make strong internal 2014 were the appointment of our communication efforts through good Employment in years (permanent employees, %) new Chief Executive Officer, the Skan- managerial work and active pro- 60 COACHING PROGRAM gass acquisition and the development vision of information broadly on FOR MANAGERIAL STAFF project of Gasum Tekniikka. In early various topics through management 2014 we introduced an ERP system blogs as well as newsletters, events 50 throughout the Gasum Group, which and trainings. Our new CEO visits A managerial work development helped us to achieve improvements our facilities actively. Employees are 40 project was implemented at Gasum such as models to increase efficiency encouraged and challenged to enter Tekniikka in 2014. The targets set in a variety of day-to-day processes. into a dialog with our management. 30 in the project to increase opera- Our intranet is an interactive chan- GASUM EMPLOYEE OF THE YEAR tional efficiency and smoothness Doing things together, nel for management and communica- 20 were challenging due to the dif- asking and learning tions. Employees can post entries on ferences in managerial experience The purpose of human resources current issues as well as comment 10 among the participants. The super- management is to make sure the com- blogs and news. "Gasum is a financially visors and managers also repre- pany has competent, responsible and sound diverse expert in clean 0 sented a variety of age groups and Competence development 2012 2013 2014 dynamic employees. energy with a long-term worked in a wide range of areas of 10 and under 11—20 21—30 31 and more Wellbeing at work is monitored We focus on personnel develop- approach that has been able responsibility involving demand- and developed in close cooperation ment and learning in a sustained and ing targets. A special coaching to focus on the challenges of with occupational health care staff. target-oriented manner. Due to the Number of personnel 31 Dec 2014 program was tailored for them to the future early enough. By providing a preventative occupa- changes taking place in our operat- harmonize managerial work and to tional health care scheme we seek to ing environment, our organization The company knows how to Permanent Fixed-term Total create and introduce new, common hire motivated and competent ways of working. ensure a healthy and safe workplace must operate even more efficiently Gasum Corporation, parent company 112 14 126 environment and community and pro- and our employees’ diverse compe- employees with whom "The coaching program was a mote our employees' health as well tencies must also be ensured over working is meaningful." Gasum Energiapalvelut Oy 19 6 25 success, and our managerial staff as their work and functional capacity. the long term. Competence needs are Gasum Paikallisjakelu Oy 5 2 7 now have shared objectives, tools Our employees’ sick leave rate is very reviewed and targets for the year are JORMA PITKÄNEN and methods that will increase our Gasum Tekniikka Oy 99 12 111 low at 2.9 per cent. Wellbeing at work determined every year in develop- Compressor Station Manager efficiency. According to feedback is monitored on the basis of regular ment discussions. Maintenance and Installation Services Skangass AS 38 received from the participants, in Imatra, Finland addition to the new approaches, the workplace atmosphere surveys. A joint training event bringing our Total 307 Gasum has around 300 employees entire personnel together is organized best thing about the coaching was and provides a considerable number of on an annual basis. In 2014 almost sharing experiences and sparring summer jobs of various lengths. In 2014 200 Gasum employees got together with each other. We will continue to our summer employees numbered 35. under the theme of “Together with have managerial workshops a few great energy”. Our employees spend times a year," says Timo Kyllönen, A culture of open communication an average of three days a year in At Gasum we are all responsible project leader for the development Our management communication training. Most of this is internal train- for wellbeing at work and a good project at Gasum Tekniikka. with our personnel is open and ing and on-the-job learning. workplace atmosphere.

34 GASUM'S YEAR 2014 GASUM'S YEAR 2014 35 SUPPLY SECURITY AND SAFETY SUPPLY SECURITY AND SAFETY

EXCELLENT SUPPLY COLLABORATION EXERCISE Gasum seeks to ensure that energy supply is disturbance-free and prepares for potential SECURITY AND SAFETY exceptional situations through exercises.

The security of natural gas supply has been excellent throughout the history Annual collaboration exercises relate to our The exercise involved a fictional seri- and remained particularly good during 2014 as well: not a single unplanned company's corporate safety and security, ous gas leak situation, where pipeline rup- business security and the security of natural ture caused a leak and a traffic accident supply interruption was seen in the Gasum transmission network. gas supply. We have regular exercises with close to a railway line and shopping center stakeholders and develop our capacities for at the same time. Fictional personal inju- collaboration. Annual collaboration exercises ries were also caused by the accident. The A major factor promoting supply in terms of its properties. Biogas From the supply security perspec- on a variety of themes have been organized accident site was close to the crossing security is our good and well-func- has been produced in Mäkikylä, tive, LNG projects enable the diversi- at our facilities and offices since 2008. of a busy road, a railway line and several tioning relations with the natural Kouvola since 2011. Bio­gas upgrad- fication of natural gas sourcing. LNG These excercises aim to provide stake- shopping facilities and business premises. gas supplier at all levels. Our coop- ing and network injection at Suome- as a fuel is safe to store and use. Its holders with more in-depth knowledge The realistic accident setup played a ma- eration lays the foundation for the noja, Espoo, began in 2012, and usage properties correspond to those about the gas sector and improve pre- jor role in making the exercise a success. maintenance of a high level of supply Finland’s latest biogas producer was of natural gas and biogas. paredness for various disturbance situ- 50 people participated in the exercise, security. Preparations are in place for connected to the network in Lahti ations and related response. Individual representing the Gasum management and disruptions and exceptional situa- in 2014. All of the current biogas Occupational safety target set operators, such as Gasum, have limited also the Kymenlaakso Rescue Department, tions. Biogas produced in Finland is facilities produce biogas from waste, at zero accidents at work resources for acting in case of a distur- Southeast Finland Police Department, Re- injected into the natural gas network, and the producers are all Gasum’s Gasum’s occupational safety target is bance, but collaboration helps achieve gional State Administrative Agency for and portable vaporizers can be used partners. We are constantly looking zero accidents at work, pipeline dam- major societal advantages. Correct re- Southern Finland, customer enterprises to feed liquefied natural gas (LNG) for new solutions to increase age cases, environmental accidents sponse can reduce the consequences of a and a communications agency. into the network or a network section the supply of biogas. or traffic accidents. We did not reach disturbance and speed up the restoration The collaboration exercise was excel- from LNG road tankers. our occupational safety target in 2014. of operations to normal level. lent proof of how well cooperation be- In 2014 the amount of undelivered LNG is an alternative and There were 11 accidents at work, five tween Gasum's central control room and energy was 0.00 GWh (2013: 0.88 GWh). logistically sound solution of these resulting in over one day of Diverse collaboration exercise the Rescue Department works and how The use of liquefied natural gas absence from work. with stakeholders important it is to continue these exercises Clean and 100% Finnish biogas (LNG) provides an alternative logisti- Safety objectives are now included The recurring themes in our exercises are to maintain skills. In the future the man- injected into the gas network cal solution and supply source for in every employee’s performance collaboration, leadership and communica- agement of disturbances will be even bet- from three different facilities natural gas. LNG can be stored and targets. Our entire personnel uses the tion in accident situations, as well as res- ter thanks to regular exercises. The suc- The use and distribution of 100 per used as a shipping fuel and by users Safety TAVA system for work safety toration of operations to normal situation. cess of our collaboration exercise is due cent Finnish biogas via the gas net- outside the gas pipeline network. management. In 2014 almost 592 The special focus selected for the 2014 to successful stakeholder cooperation work improves our supply security LNG can also be regasified and in- safety and environmental observa- exercise was internal and external commu- exercises can improve the response and and reduces dependence on im- jected into the existing gas network tions were reported to the system. nications. activities of all those participating. ported natural gas. Biogas is a safe for utilization in the same way as We will make a special effort in fuel and corresponds to natural gas traditional pipeline gas. safety management in 2015.

Annual collaboration exercise with stakeholders improve preparedness to respond to exceptional situations.

36 GASUM'S YEAR 2014 GASUM'S YEAR 2014 37 NATURAL ENERGY GAS VALUE CHAIN NATURAL ENERGY GAS VALUE CHAIN

Biogas is carbon dioxide neutral, research at universities and other

while the CO2 emissions of natural gas research institutions must be secured are clearly lower than those of other in Finland as well as internationally. Natural energy fossil fuels. For example, emissions We seek to increase gas knowledge gases are suitable NATURAL ENERGY GAS from current gas models of cars are by networking with research organi- below 100 g / 100 km when running on zations and training future experts for a diversity of uses natural gas. In practice, gas vehicles do in safety issues relating to the gas in industry, transport not cause any fine particulate emis- business in cooperation with partners VALUE CHAIN sions that reduce the quality of urban such as Aalto University in the Natu- and households. air, and the level of other local emis- ral Gas Engineering course. Every year sions is also very low. Gasum biogas we also commission several student We offer our customers intelligent and competitive gas is the only road transport fuel that has theses related to our sector. solutions for industry, transport and households. Wellbeing in the been awarded the Made in Finland Key It is important to get new talent Flag Symbol and the Nordic Ecolabel. and innovations into the gas sector. local environment and society are the starting points for providing Gasum has also organized an innova- cleaner energy through efficient gas solutions. Innovations for new uses tion competition to find new ideas for Capacities for the use of natural the promotion and utilization of sus- energy gases are developed through tainable natural energy gases. We also Production and sourcing compared with other systems such Uses of gas research and development. Therefore maintain an active in-house innova- Gasum sources all of its natural gas as the truck transport of solid fuels. Natural energy gases are versatile fuels the resources required for gas-sector tion process. from Russia on the basis of a long-term The environmental impacts and that are suitable for various sizes and supply contract. Biogas is produced emissions created during the trans- types of users. from waste using anaerobic digestion. mission of gas to end users are low. Almost half the natural gas im- Waste is then further upgraded to pro- Most emissions occur in the natural ported to Finland is used as a fuel at duce a fuel that is equal to natural gas. gas usage stage, which is also the municipal combined heat and power Upgraded biogas is mostly composed case with other fuel-based energy (CHP) production plants. Industrial of methane, just like natural gas. chains. Environmental impacts are uses of gas include a variety of heating taken into consideration in pipeline and drying processes, as raw mate- Efficient transmission design and construction. rial and steam generation. Residential and distribution Natural gas and biogas can also be customers use gas for heating and as a Natural energy gases involve pipeline transported in a liquefied form (LNG) gas cooker fuel. Natural energy gases logistics that are efficient, economi- by truck or ship to users outside the can also be used as land and maritime cal and environmentally friendly gas network. transport fuels.

38 GASUM'S YEAR 2014 GASUM'S YEAR 2014 39 EXECUTIVE MANAGEMENT GROUP, BOARD OF DIRECTORS AND SUPERVISORY BOARD EXECUTIVE MANAGEMENT GROUP, BOARD OF DIRECTORS AND SUPERVISORY BOARD EXECUTIVE MANAGEMENT GROUP 1 JANUARY 2015

KRISTIINA VUORI JARKO ALANKO JOHANNA LAMMINEN TOR MORTEN OSMUNDSEN ARI SUOMILAMMI SARI SIITONEN ALEKSEI NOVITSKY CHRISTER PALTSCHICK JUSSI TEIJONSALO born 1970 born 1965 born 1966 born 1959 born 1962 born 1969 born 1969 born 1949 born 1965 Vice President, Regulation, Vice President, Chief Executive Officer Chief Executive Officer Vice President, Vice President, Strategy Vice President, Energy Trade Vice President Chief Financial Officer Legal Affairs and HR Energy Services LicSc (Tech.), MBA of Skangass Transmission Services and Corporate Relations MSc (Econ.) MSc (Tech.) Msc (Tech.) LL.M. (Helsinki), LL.M (London), MSc (Tech.) Master of Management MSc (Econ.), MBA, BSc (Eng.) DSc (Tech.), MBA Employed by Gasum since 2004 Employed by Gasum Employed by Gasum Trained at the Bench and Business Member of the Board since 1994, in the gas since 2014 Employed by Gasum since 1994, Employed by Gasum of Directors business since 1988 Employed by Gasum Employed by Gasum Employed by Gasum Employed by Skangass in the gas business since 1989 since 2008 Member of the Skangass Member of the Board of since 2005 since 1995 since 2013 since 2013 Member of the Board Board of Directors Directors, Vice Chair Member of the Chair of the Board of Directors Member of the Biovakka Board of Directors of Directors Suomi Oy Board of Directors Chair of the Skangass GASUM'S SUPERVISORY BOARD Board of Directors Chair: Juha Rantanen Vice Chair: Jarmo Väisänen, Ownership Steering Department, Prime Minister's Office Members of the Supervisory Board: Pekka Hurtola, Ownership Steering Department, Prime Minister's Office; Minna Pajumaa, 40 GASUM'S YEAR 2014 Ownership Steering Department, Prime Minister's Office; Pavel Oderov, OAO Gazprom; Igor Lipskiy, OAO Gazprom GASUM'S YEAR 2014 41 GASUM OFFICES SKANGASS OFFICES Natural energy gases 1 ESPOO 1 TANANGER, NORWAY Gasum Corporation Skangass AS Head office Kontinentalvegen 31 P.O. BOX 21 (Miestentie 1) N-4056 Tananger ‘Natural energy gas’ is a generic term for natural gas 02151 Espoo Norway Finland Customer service: +47 52 97 97 97 and biogas. Natural gas and upgraded biogas both Customer service: +358 (0)800 122 722 www.skangass.com consist of the same substance – methane. www.gasum.com

2 HELSINKI 2 ESPOO, FINLAND 3 HYVINKÄÄ 3 GÖTEBORG, SWEDEN 4 IMATRA 4 LYSEKIL, SWEDEN 5 KOTKA 5 ØRA, NORWAY 6 KOUVOLA Natural gas Biogas LNG 7 LOHJA 8 MÄNTSÄLÄ 9 TAMPERE Consisting of almost pure methane, Biogas is a 100 per cent Finnish Liquefied natural gas (LNG) natural gas is sourced from natural renewable energy source. The com- is natural gas converted into liquid FINLAND gas and oil deposits as well as shale position of raw biogas varies form by cooling it to -162 ˚C. rock. Its net calorific value (NCV) depending on the production As a fuel, the properties of LNG is 10 kWh/m3, which corresponds to method and raw materials used. are equal to those of natural gas. the NCV of one liter of light fuel oil. Renewable raw materials of biogas In the liquid state, it only takes up SWEDEN At the moment the natural gas con- include municipal and industrial 1/600th of the volume of gas in sumed in Finland is imported along waste. Raw biogas is upgraded to the gaseous state. This is why LNG a pipeline from Western-Siberian a composition that is equal to natu- can be stored, transported and gas fields in Russia to a reception ral gas and can be used for all the used as a fuel smoothly and station in Imatra, eastern Finland. same purposes as natural gas. cost-effectively. Using LNG helps After measurements and quality At the moment it is used in Finland cut carbon dioxide emissions 9 control, natural gas is transmitted in electricity and heat production, by around 25 per cent compared from the reception station to custo- industrial facilities, home heating with heavy fuel oil. NORWAY 6 4 mers via the transmission and distri- and cooking and as a transport fuel. 3 8 5 bution network owned by Gasum. LNG is an environmentally friendly 2 The net calorific value of biogas energy source that meets the mari- 7 1 2 Natural gas has a multitude of uses. is around 10 kWh/m3. The existing time transport emission limits that Finnish industrial facilities utilize gas pipeline network is used entered into force in the Baltic Sea 5 natural gas as a fuel as well as a raw to transmit Gasum biogas from in January 2015. LNG is odorless, material, and gas provides a high rate production facilities to customers. tasteless and non-toxic, and it does of efficiency in combined heat and Biogas is injected into the Gasum not contain sulfur, fine particulate 1 4 power (CHP) production. Natural gas network from biogas facilities matter or heavy metals. can also be used instead of electricity located in Kouvola, Espoo and 3 in many industrial processes. Resi- Lahti. Biogas can also be liquefied. dential customers use natural gas for In this case it is referred to as heating and cooking. Upgraded na- liquid biogas (LBG). tural gas is also an excellent shipping and road transport fuel. Biogas is the least expensive renewable vehicle fuel in the Natural gas is the least expensive market (comparative price per vehicle fuel (comparative price equivalent liter of petrol on for equivalent liter of petrol on 2 Feb, 2015: ¤0.928/l). 2 Feb, 2015: ¤0.851/l).

42 GASUM'S YEAR 2014 Gasum is a Finnish expert in natural energy gases. Gasum imports natural gas to Finland and upgrades biogas. The company transmits and supplies them for energy production, industry, homes and land and maritime transport. Gasum develops the Finnish and Nordic energy infrastructure by investing in the LNG market, biogas business and transport services. Gasum is the leading supplier of biogas in Finland. Gasum feeds biogas into the gas network from Espoo, Kouvola, and Lahti. In May 2014 Gasum acquired the majority of the LNG distribution business of the Norwegian company Skangass. Skangass continues to strengthen the position of LNG and the broader utilization of new solutions in Finland, Sweden and Norway. Gasum Group company has more than 300 employees. The company’s revenue for 2014 totaled ¤1.1 billion.

CLEANLY WITH NATURAL ENERGY GASES – GASUM.COM