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HomeLNGUpdate on the construction of Paldiski LNG terminal in Estonia

Update on the construction of Paldiski LNG terminal in Estonia

The construction of the liquified natural gas (LNG) terminal in Paldiski, Estonia, has now moved to the stage of laying the offshore pipe which will connect the gas infrastructure on land and the equipment on the hauling pier. The Estonian electricity and natural gas transmission system operator, Elering, is set to complete this stage of construction at the end of November.

“Efforts in procuring the necessary equipment and materials and the design and construction work are occurring at a breakneck pace, enabling us to confirm that Elering will complete the construction of the pipeline connection on schedule by the end of November,” said the Chairman of the board of Elering, Taavi Veskimägi.

Elering is building the reception capacity of the LNG floating terminal in Paldiski in accordance with the agreement concluded between Estonia and Finland and based on the technical data of the floating terminal leased by the Finnish party. Currently, only one party has shown interest in bringing the floating terminal to Paldiski after submitting the mandatory application by law to be connected to the Estonian gas system. If other third parties are interested in connecting an LNG floating terminal in Paldiski to the gas network, they must submit another application after which it will be possible to evaluate whether or not and to what extent to rebuild the connection point of the gas network.

According to Elering’s Chairman, based on the weekly gas adequacy analysis in cooperation with the gas system operators of Estonia, Latvia and Finland, the security of the gas supply of the region is guaranteed based on the reserves of the new Gulf of Finland and Klaipeda floating terminal and the Latvian gas storage. This is also under the condition that the Baltic electricity system works as part of the continental European electricity system and large quantities of natural gas move out of the Baltics towards Poland through the Lithuanian-Polish pipeline connection.

At the same time, Mr Veskimägi pointed out that from a security perspective, having more rather than fewer terminals is significant in ensuring the security of supply.

“According to the forecasts of the gas system managers of the region, gas supply sources and infrastructure are sufficient to cover the winter gas consumption of the region,” he said.

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