Latvia's Minister of Economic Affairs Janis Vitenbergs was authorized to sign a mutual intentions agreement with his Estonian and Finnish colleagues for the construction of the Paldiski terminal.

Next, the three countries' transmission system operators will create a joint company for leasing a floating liquified natural gas storage and regasification unit (FSRU) and terminal services.

Based on consumption, Latvia is looking at a 30 percent stake and an investment of €30-40 million, the ministry estimates.

The location and investor for Latvia's own LNG terminal should become clear by June.

"We have already confirmed that the government supports constructing an LNG terminal in the country. However, we have now decided to join Estonia and Finland in the first stage of giving up Russian gas. The goal is to procure additional gas from our neighbors in the north, at least for the first few years and until Latvia can finish its terminal. We have also decided to create strategic gas stockpiles," Prime Minister of Latvia Krišjanis Karinš said.

"We see that it is the only way to secure additional gas supply for the region during the heating season," Vitenbergs remarked.

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