Estonian and Latvian ministers on Friday signed a framework agreement to create liquefied natural gas (LNG) reception capacity for both countries in the event of a crisis.
Minister of Climate Kristen Michal (Reform) and Latvian Climate and Energy Minister Raimonds Čudars inked the deal which will help to guarantee energy supply throughout the region.
The document says, if necessary, a floating terminal will be brought to Estonia's Pakrineeme Port at Paldiski which will create additional capacity for accepting gas supplies. The LNG will then be piped to Latvia and stored in the country's underground storage facility.
Michal said Russia's aggression in Ukraine has increased the risk of supply interruptions throughout Europe.
"We will agree among ourselves how we will deal with possible supply disruptions because if the situation were to change at some point, we would be able to quickly use the Pakrineeme Port to receive natural gas if necessary," said Michal.
Joint crisis operations and costs will be agreed upon and the countries with form a working group to do so.
Michal said, currently, LNG terminals in Finland and Lithuania are sufficient to meet Baltic and Finnish needs.
"However, the infrastructure put in place on the Pakrineeme last year provides significant additional insurance and reassurance that we can cope with emergencies," he said.
Estonia has also created a strategic gas reserve that holds three months' supply.
Editor: Helen Wright