Port of Tallinn, Alexela May Build LNG Terminal in Paldiski
- Business & Finance
The Port of Tallinn (AS Tallinna Sadam) and AS Alexela Invest have revealed plans to assess possibilities of the development of an LNG terminal in Paldiski, Estonia.
The two parties have signed a memorandum of understanding (MOU) for finding the best solutions for the construction of the terminal and servicing LNG tankers and bunkers as well as establishing port facilities for loading and unloading LNG on the Pakri peninsula by the Lahepere bay in Paldiski.
As informed, the port and Alexela will continue to negotiate the conditions for joint activities with the aim of reaching the contract by the end of 2020.
According to the terms of the MOU, the responsibility of the Port of Tallinn in participating in the Paldiski LNG terminal project would be the development and maintenance of the necessary port facilities. Alexela would be responsible for the establishment and operation of the terminal.
Valdo Kalm, Chairman of the Board of the Port of Tallinn, noted that more and more shipping companies in the Baltic Sea and around the world are replacing traditional diesel fuel with cleaner LNG on board their vessels. He added that the Port of Tallinn is interested in contributing to the initiatives aimed at introducing environmentally friendly technologies in the maritime sector.
The Port of Tallinn is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2017 serviced 10.6 million passengers and 19.2 million tons of cargo.
In addition to passenger and freight services, the port group also operates in shipping business via its subsidiaries – OÜ TS Laevad and OÜ TS Shipping.