Latvia will develop its liquefied natural gas terminal

Today, 6:08 p.m.

Updated today, 6:36 p.m.

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Prime Minister Krišjānis Kariņš (“New Unity”) said that the coalition had agreed that a liquefied natural gas terminal should be developed in Latvia, where it would be possible to regasify liquefied natural gas in the terminal itself.

It is planned to entrust the Ministry of Economics (MoE) with working with potential investors, as well as choosing the best location for the construction of such a terminal.

Earlier, the Prime Minister mentioned two potential development sites for the terminal: Skulte and the port of Rigawhich was also approved today by the Minister of Economics Jānis Vitenbergs (National Union).

The Minister of Economics acknowledged that the MoE has started negotiations with several potential investors of the liquefied natural gas terminal. According to the forecasts of the entrepreneurs themselves, the terminals in Latvia could be built by 2023–2024. year. “Such a project together with the Inčukalns underground natural gas storage will create a unique gas supply system,” said the Minister.

The Minister emphasized that the liquefied natural gas terminal in Latvia should be developed by private companies without state financial participation. “There are different offers received from entrepreneurs, they would not want to analyze each project,” Vitenbergs said.

At the same time, the MoE will have to continue working with Estonia and Finland to ensure the supply of natural gas from the future Paldiski terminal, which will start operating in the autumn. Latvia could start receiving natural gas from this terminal at the end of the year, Vitenbergs admitted. Latvia will also continue to co-operate with the Lithuanian liquefied natural gas terminal in Klaipeda.

The Minister of Economics noted that it is planned to give up supplies of Russian natural gas from January 1 next year. Consequently, the Estonian Paldiski terminal and the Klaipeda terminal will be the main natural gas supply routes until Latvia has built its own terminal.

“We will develop our terminal, at the same time we are open for cooperation with our northern and southern neighbors,” the prime minister said.

CONTEXT:

For more than a decade, the idea of ​​alternative gas supplies to the Baltic region and Finland has been actively discussed among both politicians and experts, and the establishment of a regional gas terminal in one of the four ports has been mentioned as the fastest way to provide alternative supplies. The European Commission (EC) has expressed its readiness to co-finance this project. Initially, the port of Riga was mentioned as the most promising place for the establishment of such a terminal. The main arguments in favor of this choice are mentioned Proximity to Inčukalns underground gas storagehistorically developed gas transmission infrastructure and geographical location.

Although Lithuania promised support for the establishment of a regional terminal in Latvia from the Baltic States, the biggest problems were with Estonia. States are unable to agree on the location of a regional terminal as mediator summoned EK. Contrary to Latvia’s expectations, its hired consultants recommended it as the most promising construction site for the terminal The coast of the Gulf of Finland in Estonia or Finland. Meanwhile, at the end of 2014, Lithuania had already completed its own terminal in the port of Klaipeda started operations at the end of 2015.

The Latvian coalition parties agreed last week that Latvia, in connection with Russia’s aggression in Ukraine, Russian natural gas supplies must be abandoned. The MoE responsible for the energy sector has been instructed to draw up an informative report with solutions on how Latvia could refuse to supply Russian natural gas. The scenarios developed by the MoE were to be submitted to the coalition for evaluation this week.

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