Eesti Gaas: Priority access to Finnish LNG terminal is very good news

Margus Kaasik.
Margus Kaasik. Source: Siim Lõvi /ERR

Estonia's gas supply is guaranteed wherever the LNG storage vessel docks and preferential terms for local companies are "super good news", head of Eesti Gaas Margus Kaasik said, after it was reported on Monday afternoon that the ship will initially be based in Finland.

Kaasik, chairman of the board of Eesti Gaas, said he was not very surprised by the news about the LNG vessel, also known as a floating storage regasification unit.

"This is what the market participants suspected, that it was more likely to go there because it is important to the Finns," he said.

"I read that the intention is to give priority access to this terminal to those who supply gas to Estonian and Finnish customers. If that happens, it will be big news and it will be super good news."

Kaasik said this means Eesti Gaas' supply is guaranteed.

The chairman believes a third permanent terminal in the region, for example at Paldiski as has been suggested by the Minister of Economic Affairs Riina Sikkut (SDE), is unlikely to be needed.

"Another question and suggestion that came up earlier — would it make sense to make this investment on a temporary basis, for security of supply. That in itself is a worthwhile idea," he said.

Security of supply is guaranteed for this winter even if something were to happen to Balticconnector, the pipeline which runs between Finland and Estonia, Kaasik believes.

He said Estonia has also increased its reserves at the Incukalns gas storage center in Latvia and looked for different suppliers.

The chairman does not think it likely Finland would limit Estonia's supply of gas.

"Today, we are also connected to Finland via electricity cables, and there have [already] been difficult times in the electricity market, but the lines have not been closed because Finland would be better off," he said.


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Editor: Helen Wright

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