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Post: According to media reports, Estonia was embarrassed by its decision to send its LNG terminal to Finland

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A worker checks valves at an LNG terminal. Archive photo

ERR: Estonian gas market players do not understand the decision to send LNG terminal to Finland

HELSINKI, 11 October – RIA Novosti. Estonian gas market players do not understand the Minister of Economy and Infrastructure’s decision to send a floating liquefied natural gas (LNG) terminal to Finland, the state broadcasting portal reported on Tuesday ERROR.

After meeting with Finnish counterpart Mika Lintilä on Monday, Estonian Minister of Economy and Infrastructure Riina Sikkut told the ERR that the LNG terminal, which will also supply gas to Estonia, will go to a dock under construction in Finland this winter.

Estonia and Finland had previously agreed that a regasification vessel for the receipt of liquefied natural gas would be the first in the country to complete the construction of the necessary infrastructure for this next winter. ERR completed construction first in Estonia, but the terminal will still be shipped to Finland, which promises to complete construction in mid-December.

According to Martti Talgre, CEO of Infortar, Alexela and Infortar built a dock in the city of Paldiski at the behest of the state and knowing that a floating LNG terminal was coming to Estonia. “From the spring until today, we got the guarantee that if we prepare the dock by the deadline, the floating terminal will go to Paldiski. So far all our effort has depended on it. We did not think that the floating LNG terminal would come. Never come to Paldiski” – he told ERR Talgre.

Heiko Heitur, managing director of the Estonian Gas Association, told ERR that it was not clear to him how Estonian businesses would access the terminal.

“It was stated in the news that Estonian gas sellers could have privileged access to capacities, but so far this is only on paper. There was an agreement in the spring that the terminal will go where the infrastructure will be ready – this did not happen. And now we have to believe that we will buy gas from Finland. It would be nice if that happened , but in essence and technically it is much more difficult to do,” stressed Heitur.

The system administrator of the Eleering plant, as well as the Ministry of Economy and Communications, had previously stated that there would be no gas shortage in the region.

“But if we look at Estonian gas sellers, both the Ministry of Economy and Elering know very well that next year the supply should come from the new terminal. So, if gas sellers do not have access to the Finnish terminal, then there will be no place to buy gas from.” said Heitur.

According to a recent study by Estonia’s largest bank, Swedbank, the survival of half of Estonia’s industrial enterprises depends on the availability of natural gas. Dependence on natural gas is at its highest in food and heavy industry.

Source: Ria

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