Baltic States Build Mini-LNG Terminal

A joint venture of Finland’s Hamina Energia and Estonia’s Alexela Varahalduse has taken the decision to build a €95mn ($107mn) LNG import terminal at Hamina in Finland. The Finnish state is paying 30% of the cost, under an agreement from 2014.

During the first stage of the project, Hamina LNG will build a 30,000 m³ storage tank along with the capacity for receiving and vaporising LNG. It will allow gas into the local distribution network and also supply natural gas to customers who are not connected to the network, Alexela said in a statement, with trucking and bunkering facilities part of the plan. If there is enough demand, the venture could build a second, 20,000 m³ storage tank.

The Finnish government has said it believes that LNG enables the creation of new energy-intensive industrial sectors in the Hamina area and beyond.

Meanwhle, Alexela sees the construction as part of its development strategy in the Baltic countries and Finland.

Preparations for the construction of the Paldiski LNG terminal in Estonia are also now complete, including the finalisation of the environmental impact assessment and the project will be put out to tender.

The final investment decision will have to wait for the end of consultations between Baltic prime ministers. The Lithuanian LNG import terminal operator Klaipedos Nafta, whose own terminal is under-used, is also involved in discussions. With US LNG export capacity progressively building up, more cargoes are expected to come to north Europe despite low prices from Russia.

Alexela Group failed to secure EU funding for the Paldiski LNG project in last year's round of calls for energy proposals but continues to push the project forward, hoping for funds from private investors.

Linas Jegelevicius