Page 9 - EurOil Week 13 2022

EurOil PIPELINES & TRANSPORT EurOil

Latvia mulls LNG terminal construction

LATVIA LATVIA is weighing up the construction of an interest; we will also go to America to inquire
LNG import terminal, and US and Middle East- about the possibilities of building such a termi-
Latvia benefits from ern investors have shown interest in participa- nal on commercial principles, and let’s talk to our
having the Baltic tion, the Latvian economics ministry told local neighbours as well,” Karins said.
region's only gas storage television network LTV on March 27. The Klaipeda LNG terminal in Lithuania has
facility. At least four potential investors have seen an all-time high in its demand this year, with
expressed interest in the project, which would its capacity now fully booked until September.
complement the Baltic region’s only existing Lithuania is the largest consumer of gas among
terminal in Klaipeda, Lithuania, which would the Baltic states, with 20 TWh of demand, but in
have a capacity of 3.8bn cubic metres per year. second place is Latvia with 10 TWh. Latvia also
Latvian Prime Minister Krisjanis Karins justified benefits from having the region’s only working
the development, citing the heightened need for gas storage facility in Incukalns, not to mention
energy security in the wake of Moscow’s invasion its centre position between Lithuania and Esto-
of Ukraine. nia, which consumes 5 TWh of gas. Estonia’s
“There are companies in Latvia that are con- only alternative to gas imported via Latvia is
sidering such an opportunity and have shown Russian supplies. ™

POLICY

G7 opposes ruble payments

for Russian gas

RUSSIA THE G7 group of countries have all rejected signed.”
Russian President Vladimir Putin’s call for pay- Earlier on March 28, reporters asked Krem-
The G7 nations have ments for Russian gas to be made in rubles, Ger- lin spokesman Dmitry Peskov whether Russia
refused to follow man Economy Minister Robert Habeck said on might cut gas supply to European customers if
Russia's requirements. March 28. they did not follow the requirement.
Putin announced on March 23 that all pay- “We clearly aren’t going to supply gas for free,”
ments for Russian gas by so-called “unfriendly Peskov responded. “In our situation, it’s hardly
states” should be made in rubles, instructing possible and feasible to engage in charity for
Russia’s central bank and Gazprom to prepare to Europe.”
impose the requirement within a week. Already Moscow will take decisions in due course if
a number of European gas buyers have criticised European countries refuse to pay in Russia’s cur-
it as a violation of supply contracts, which stipu- rency, Peskov said.
late which currencies bills should be paid in. Economists believe that the decision could
“All G7 [energy] ministers agreed that this is help support the struggling Russian currency,
a unilateral and clear breach of existing agree- but at the same time it would also restrict Mos-
ments,” said Habeck, whose country holds the cow’s access to euros that it needs to service its
G7 presidency. “Payment in rubles is not accept- debts. ™
able and … we call on the companies concerned
not to comply with Putin’s demand.”
Habeck added that the demand showed that
the Russian leader had “his back against the
wall.”
German Chancellor Olaf Scholz also reiter-
ated that ruble payments were not on the table,
stating that “the contracts we know lay down the
euro as payment currency and the companies
will pay according to the contracts they have

Week 13 31•March•2022 www. NEWSBASE .com P9