EC’s cost-benefit analysis speaks in favour of LNG terminal in Muuga

A LNG terminal in the Netherlands (Reuters/Scanpix)
10/8/2015 9:17 AM
Category: Economy

After now cancelled Finnish Gasum OY’s project, the regional LNG terminal planned in Muuga, Estonia received the highest score in a cost-benefit analysis of the Baltic Sea’s European common interest projects, conducted by the European Commission’s working group. This gives a strong foundation to proceeding with the regional project at the Port of Muuga.

"In cooperation with AS Tallinna Sadam, Koninklijke Vopak N.V. and AS Vopak E.O.S. are running the project for providing gas security of supply for Estonia and catering the regional LNG needs. The project will be implemented in phases, in accordance with the regional market needs and gas security requirements," said Arnout Lugtmeijer, CEO of Vopak E.O.S. The project is included in the the European Commission’s BEMIP (Baltic Energy Market Interconnection Plan) Gas Regional Group list of the projects of common interest and already started preparation works include a planning process by Jõelähtme Municipality for a regional LNG terminal.

Lugtmeijer pointed out that Tallinn LNG Terminal is a feasible solution for establishing a LNG terminal for providing security of supply of gas for Estonia, and integrating the Estonian gas infrastructure with the region.

"The ultimate goal is to guarantee the security of supply of gas, to diversify sources of supply and create a well-working gas market – a LNG terminal facility would serve this purpose, the earlier the better. We expect to launch the Tallinn LNG terminal’s first stage with bunkering capability in 2017 and, in line with the schedule of Balticconnector’s completion, expand it to according to the requirements of a regional LNG terminal by 2019," Lugtmeijer said.

Port of Muuga’s existing infrastructure, with deep-water access allows to accommodate an LNG terminal facility development without additional port infrastructure extension.

“Tallinn LNG terminal is a strategic project for ensuring the security of supply, and should therefore be developed in close cooperation between the public and private sector,” Lugtmeijer stressed.

Port of Tallinn, Elering, which owes close to 100 percent of the nation's gas network and AS Vopak E.O.S. signed a letter of intent already in 2012 and now the three will cooperate on the project.

M. Oll

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