Balti Gaas: LNG Terminal in Paldiski to Cost 350 Million EUR (Estonia)
OÜ Balti Gaas (Balti Gaas plc) that develops a liquefied natural gas (LNG) terminal close to Paldiski (North Estonia) estimates total investment about €350m. According to the company the terminal’s operator will be Balti Gaas while future owners are expected to be gas transmission networks (TSOs) of Estonia, Latvia, Lithuania and Finland, said Urmo Männi, Member of the Board of Balti Gaas.
Männi added that the terminal would potentially cover entire gas consumption in Estonia and the company has for future supplies a pre-agreement with Nitrofert, Estonia’s largest industrial gas consumer.
“The terminal is planned for security of supply for the three Baltic countries and Finland. Ship bunkering with LNG in the Baltics region shall be another significant business opportunity,” Männi said.
Location research, conducted by international consulting companies like Ramboll and Pöyry, sees for Paldiski several advantages for building a LNG terminal in the region, for the Baltic countries and Finland. Balticconnector, a planned gas pipeline connecting Finland and Estonia, reaches Estonia at Paldiski to give security of supply. The sea at Paldiski is almost ice-free and there are no residential or industrial areas in the proximity of the planned terminal.
In the same Männi outlines the importance of LNG terminal to be built in Estonia. “LNG terminal would be of essence in terms of the security of energy supply, from Finland across the Baltics. Having the terminal here allows Estonia to become a regional centre for the LNG (Northern LNG Hub) and it is beneficial, in addition to the security of supply, also for the exports and employment,” said Männi.
The project by Balti Gaas has been designed in accordance with BEMIP (Baltic Electricity Market Interconnection Plan), approved by the European Commission, the program with an objective to maintain the security of energy supply in the region, i.e. in the electricity and gas sector, and integrate Baltic and Finnish gas networks.
Paldiski terminal is planned for two containers with a capacity of 160,000 cubic metres each. When completed, the terminal will employ about 60 people and 200 people will be engaged in the construction works before.
OÜ Balti Gaas is owned by Baltic International Trading OÜ, Paldiski Arendamise AS and Sergei Timoshenko.
Source: Balti Gaas, January 7, 2011;