Latvia plans joint use of Estonia's Paldiski LNG terminal

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The Ministry of Climate and Energy (KEM) will start work on arranging access for the joint use of the Paldiski LNG terminal in Estonia with a view to strengthening the security of Latvia's natural gas supply, the KEM said in a statement on April 12.

The Ministry stated that last year the context of the region's natural gas system had changed significantly: the Lithuanian-Polish interconnector and the Inkoo terminal in Finland started work, as well as the construction of a future LNG terminal in Paldiski in Estonia.

As regards proposals for a future Skulte LNG terminal in Latvia itself, none of the conditions submitted for project cooperation have been assessed as commercially or operationally viable, and the construction is not possible without substantial guarantees on the part of the state, the KEM said. It is also concluded that it is not possible to build a commercially self-sufficient LNG terminal in the region in addition to existing terminals in Lithuania and Finland and the future terminal in Estonia.

At the same time, the Ministry has carried out an initial conceptual assessment of alternative solutions to strengthen gas security. The Cabinet has now given the task to the KEM, in cooperation with the responsible Estonian national regulatory authority, to start work on the development of possible conditions for the joint use of the Paldiski terminal, making it an LNG gateway for both Estonia and Latvia.

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