Jetgas to construct liquified methane terminal in Port of Muuga
State-owned Port of Tallinn and Jetgas have signed an agreement under which the latter will construct a liquefied methane terminal with up to five tanks at the Port of Muuga by 2030 at the latest. The terminal will include a pipeline connecting to the quay line.
This spring, Port of Tallinn (Tallinna Sadam) organized a tender to find partners for the development of a 7.6-hectare area in the eastern part of the Port of Muuga. As a result of the competition, a liquefied methane terminal will be established in this location.
"The new terminal and our collaboration with Jetgas, a long-time player in the energy products market, will bring us additional ship visits and cargo volumes while creating opportunities for the transport sector to transition to more environmentally friendly fuels," said Valdo Kalm, CEO of Port of Tallinn.
Liquefied methane includes fossil-based liquefied natural gas (LNG), liquefied biogas (bioLNG), as well as synthesized and subsequently liquefied methane, known as e-LNG or synLNG.
Jetgas CEO Janek Parkman stated that the liquefied methane terminal at Muuga will enable the company to procure primarily bioLNG, along with other methane-based fuels, in larger quantities from the global market, which is expected to result in more favorable prices and improved supply security.
Jetgas' main business activities involve the import of LNG and the sale of natural gas to clients in Estonia and elsewhere in the Baltics. The company's primary customers are industrial enterprises across the Baltics that have high energy needs in their production processes.
The Port of Tallinn has signed a 30-year building rights agreement with Jetgas for a plot of approximately 7,000 square meters.
The first phase of the terminal, including the construction of one tank, is planned to be operational by the end of 2027.
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Editor: Karin Koppel, Marcus Turovski