Page 12 - GLNG Week 21 2022

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Still unclear who is renting

Estonia’s floating LNG

terminal at Paldiski

TERMINALS CONSTRUCTION is already underway on the expressed concern.
new LNG terminal near Paldiski, and the moor- Haal remains confident in Alexela’s capabili-
ing quay is slated to be completed by the end of ties. “We are sure about our own part, but we’re
August already. Alexela confirmed that LNG not sure about whether Elering can manage its
reception capacity will be established in early task,” he said. “But we very much hope that they
November. It still remains unclear, however, will live up to their words.”
whether private investors Alexela and Infortar Meanwhile, Paldiski Sadamad AS, the owner
or the Finnish state will be the ones to rent the of Paldiski North Port, sent members of the Esto-
necessary floating storage and regasification nian government an appeal in which it stated
unit (FSRU), ERR.ee, an Estonian news website, that the North Port would be a more suitable
reported on May 20. location for a floating LNG terminal than the
A Belgian dredger arrived at the tip of Pakri terminal being built by Alexela at the tip of the
Cape on May 17, where it began preparatory Pakri Peninsula.
work for the construction of a mooring quay in In the letter, Paldiski Sadamad AS supervi-
the coastal sea there. Also underway are test pile sory board chairman Aleksei Murisep said that
works. Paldiski North Port could immediately accom-
According to Alexela board member Marti modate an FSRU, thus making it possible to
Haal, the company is currently on track, as ini- ensure Estonia’s gas supply by November 1.
tially planned, to complete the mooring quay by He noted that Paldiski North Port provides
the end of August, which it will then hand over the fastest maritime connections with Sweden,
to electricity and gas system operator Elering for Finland and the rest of Europe and underscored
the installation of a gas pipeline and equipment. that the port is naturally deep and ice-free year
The LNG reception capacity currently being round.
built in Estonia will be similar to that of Lithua- Murisep said that in the current market situa-
nia, where LNG delivery is ensured by the FSRU tion, the accelerated construction of a new quay
Independence in Klaipeda. The FSRU, in turn, is would be expensive and still may not be com-
supplied by regular LNG tankers. pleted in time.
Who will be bringing the FSRU to Paldiski, Among other concerns, he also believes that
however, still remains unclear. Alexela’s offered location at the tip of Pakri Pen-
“We’re in negotiations regarding a ship, and insula is unsuitable and essentially located out on
actually we know that the Finns are as well,” Haal the open sea.
said. “We’ll have to agree here soon regarding The port owner finds it unlikely that all of the
which of these ships will be coming here this necessary infrastructure can be completed by the
autumn.” November 1 deadline.
“We’re actually waiting for the Finns’ response “On top of that, the rapidly planned floating
regarding whether they will agree to this ship terminal is located in a Natura 2000 nature pro-
being located there, and under what condi- tection area; an environmental impact assess-
tions,” explained Minister of Economic Affairs ment has not been conducted,” it added.
and Infrastructure Taavi Aas (Centre). “And of Paldiski Sadamate AS is proposing that the
course, whether the private sector obtains its Estonian state “consider the opportunity to use
own ship or not will depend on this.” the existing and safe Quay Number 7 at Paldiski
The Estonian government is not 100% sure North Harbour as the location of the floating
whether private investors will manage to build LNG terminal. If necessary, the port is prepared
the necessary LNG reception capacity in time, to scale back all other port activities in order to
which is one reason why the state is purchasing ensure the full safety of the terminal.”
its own natural gas reserves. Should the state choose to go this route, all
“Each construction is complete once its build- that would be necessary to do is build a few kilo-
ing permit is issued,” Aas explained. “And we’re meters’ worth of pipeline on land to connect it
still taking into account that the entire process with the BalticConnector pipeline, Murisep said.
is actually, as both sides have acknowledged, a “We already have the necessary technical
world record — nothing has ever been built so draft solution, and construction of such a land
quickly before. A lot of questions still remain, pipeline is fast and cheap,” he highlighted. “As the
and naturally it’s reasonable as a result to have a pipeline is being built, the transport of container-
guaranteed supply.” ised LNG to BalticConnector can be arranged. ™
Prime Minister Kaja Kallas (Reform) likewise

P12 www. NEWSBASE .com Week 21 27•May•2022