Infortar: Source of LNG for Paldiski terminal still unclear

LNG terminal construction site in Paldiski.
LNG terminal construction site in Paldiski. Source: Alexela

Martti Talgre, executive manager of LNG project stakeholder Infortar, said that it is still unclear where Estonia plans to get the gas and what is the plan 70 days before the planned launch of Estonia's LNG terminal.

"No market participant or consumer knows who, where and how will be offering the service and importing LNG," Talgre told daily Postimees (link in Estonian).

Talgre said that the mooring quay is being constructed at record speed, while it remains questionable whether an operational terminal will be the result. He gave the makeup of the gas market and how it works as the reason for the confusion.

"While the private sector has been told for a decade that an LNG terminal is private business in which the system operator should not meddle, with corresponding legislation passed on both the European and local levels, authorities in Estonia and Finland have turned these principles upside down in the last six months," Talgre said.

CEO of transmission system operator Elering, Taavi Veskimägi, said on the "Terevisioon" morning show on Monday morning that as a market participant, Talgre should be answering the very questions he's asking.

"Elering's responsibility is clearly outlined. Elering is in charge of building the pipeline. Our work is progressing on schedule and will be completed by November 30. The question is a valid one but needs to be answered by Talgre. There was much ado over who would be in charge of what this spring. Elering wanted to solve the entire problem, starting with the terminal and ending with creating the supply chains. Back then, we were told by the private sector that the state need not intervene. To now come out asking why the state does not have a solution after promising to take care of it... They should be answering these questions as gas market participants instead of asking them," Veskimägi said.

ERR has previously reported that the Paldiski LNG terminal is made up of three parts – the port, Elering's pipeline, Balticconnector and the ship. Alexela and Infortar are responsible for the mooring and port infrastructure. Estonia and Finland agreed in spring that the FSRU to supply the region with LNG will be moored at whichever terminal is finished first.

Estonia and Finland are both constructing LNG terminals to find alternatives for Russian gas.


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Editor: Marcus Turovski

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