State buys Paldiski LNG quay from Pakrineeme Port
The Estonian Stockpiling Agency and Pakrineeme Port inked a deal on Friday for the state to acquire the liquefied natural gas (LNG) loading quay in Paldiski, as well as the related infrastructure and port property. The total value of the transaction is €31,500,000 excluding VAT.
The transaction fulfilled the Estonian Stockpiling Agency's (AS Eesti Varude Keskus or ESPA) promise to private sector to purchase an LNG quay if their business prospects for managing LNG receiving infrastructure changed significantly.
Ando Leppiman, the head of the stockpiling agency, said that the state purchased the quay with the intention of establishing an independent gas security supply solution for Estonia in collaboration with Elering, the owner of the gas infrastructure.
Prior to the purchase of the quay, the ESPA commissioned a legal, financial and technical assessment to ensure that the quay meets the necessary requirements.
According to the ESPA, Parineeme Port did an excellent job in constructing the quay and associated infrastructure in a timely manner. The quay built on the sea will be able to receive LNG.
The next objective of the ESPA is to continue preparations for the port's entire development to be completed by the fall of this year, while Elering, the gas system operator, is responsible for the gas infrastructure and connection offer.
The aim of the Stockpiling Agency is to strengthen Pakrineeme Port's capacity to deliver port services that meet international standards.
Leppoman said that Estonia will have the independent capacity to receive LNG by sea, increasing the country's and region's energy security. Businesses in the region will have a third option for importing natural gas in addition to the LNG-capable ports of Klaipeda and Inkoo.
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Editor: Mirjam Mäekivi, Kristina Kersa