LETA/Postimees: Russian frost froze Sillamäe LNG terminal

The war of European Union and Russian sanctions put an end to the grand plans of building the Sillamäe gas terminal that would have cost hundreds of millions of euros and could have become an important transit centre for Gazprom gas.

"The Sillamäe terminal could have become, besides the Ust-Luga port, a Gazprom gas transit project, but now they do not consider it possible to expand in our direction," said one of the founders of the Estonian transit business Endel Siff, who last year became the head of Sillgas, that planned the Sillamäe terminal. The plan then was to build a 500 million euro terminal that would have processed Gazprom pipeline gas into LNG but also receive it from big ships for storing and selling. The terminal was supposed to handle 2.3 million tonnes of gas a year.

Siff estimated that construction of an LNG terminal for Estonian consumers has no perspectives since the government policy favours the use of local fuels, and the excise tax on natural gas that this year increased by 20% reduces the competitiveness of the so-called light-blue fuel further.
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