Elering/Tallinna Join Forces with Vopak on LNG
Vopak LNG will join forces with Elering and Tallinna Sadam to cooperate on the building of an LNG terminal in Estonia.
Following the signing of a Letter of Mutual Understanding between the three, Vopak will act as the international strategic partner for the project. The three will now undertake a feasibility study on the terminal planned for the Muuga Harbour. A statement from Elering says this feasibility study will identify the costs of the project, the need for funding from the EU and the technical and economic parameters of the project.
The feasibility study is due to be presented to the Estonian Ministry of Economic Affairs in August.
Elering says the decision to bring Vopak LNG, a subsidiary of Royal Vopak, on-board as a partner was taken in light of the company's experience internationally with the LNG market and in operating and developing LNG terminals.
"Vopak LNG has experience in establishing and operating the largest LNG terminal in Europe: the GATE terminal in Rotterdam, which makes Vopak LNG the most considerable strategic partner for the developers of LNG terminals in the region of the Baltic Sea," natural gas business developer for Elering Janek Parkman said.
The measure and construction of the terminal will also aid Estonia in abiding by the EU's competition laws, enabling it to break its reliance on Russian imports and diversifying its supply.
"In developing the LNG terminal, Estonia complies with the principles of European Union directives on natural gas, which state that the ownership and administration of energy infrastructures must be kept separate from producing and selling energy," Chairman of Elering's Board Taavi Veskimägi said.
An LNG terminal build would enable Estonia to meet the directives set out by the EU which calls for the separation of supply, sale and transport. Gazprom is currently the sole importer to the Estonian market and also a 37 per cent stakeholder in national gas company Eesti Gaas. That company is set to be separated before 2015 following the approval of the Estonian parliament of a separation bill.