Location of Baltic LNG terminal still undecided

TALLINN –  At the meeting with the European Energy Commissioner Gunther Oettinger on Wednesday in Brussels the economy ministers of Finland, Poland and the Baltic States discussed developing common natural gas market but did not reach a common position regarding the future liquefied natural gas (LNG) terminal location, Postimees Online reports.

“The aim of all states is to create a gas market that would have competition,” said Estonian economy minister Juhan Parts after the meeting.

Parts said that a package agreement will be concluded to design a common gas market, which covers investments in all states. In order to create the gas market, Poland-Lithuania and Estonia-Finland gas pipelines have to be built and Latvian gas grid has to be strengthened.

One of the most important topics was the choice of location for regional LNG terminal. Both Finland and Estonia would like the investment that the EU will back to be made in their country.

Parts said that the selection process continues and at the end of March experts will convene again to consider the terminal location.

"The commission analyzes the LNG terminal projects," said Parts. "Developers have to be ready to present their projects in a more mature state so that the project that corresponds to regional interests most and is economically most reasonable could be chosen."

Finnish Gasum wants to build the LNG terminal in Inkoo, Elering together with Port of Tallinn in Muuga and Alexela in Paldiski. Estonian economy ministry prefers the Paldiski project.