Plans to construct the EUR 500 million Sillamäe gas terminal in Estonia have been abandoned due to ongoing sanctions imposed by the European Union against Russia, as reported by Estonian daily Postimees.
The construction of the terminal was proposed by Estonian Sillgas company.
The terminal was intended to have handling capacity of 2.3 million tonnes per annum.
According to Sillgas Chief Endel Siff, cited by the newspaper, the freezing of relations with Russia has influenced investors’ interest in the project making it less viable for execution.
In addition, the project would be contrary to the Estonian government’s policy which favours the use of local fuels, Siff added, taking into account the fact that the terminal was supposed to process Gazprom pipeline gas into LNG.
The project’s competitiveness is further hampered by the excise tax on natural gas that rose by 20 pct.
World Maritime News Staff