The liquefied natural gas terminal in Skulte could cost around € 120 million / Article

The increase in prices is due to higher prices for raw materials. Michelson claimed that the fastest terminal could be built in 2023.

The General Director of Skulte LNG Terminal informed that the terminal consists of two parts – a connection and a platform. It would take up to two years to deliver the platform on a day-to-day basis, but if it needs to be delivered quickly, suppliers would be ready to complete the order within a year. Meanwhile, the pipelines required for connection to the Inčukalns underground gas storage can be received in about four to five months, but their construction would take about six months under the fastest scenario.

Residents of this historic resort town are opposed to the construction of the Skulte terminal near Saulkrasti. In addition, Riga was previously identified as the most suitable location for an LNG terminal in Latvia, comparing four possible locations.

The General Director of Skulte LNG Terminal also acknowledged that the rapid construction of the terminal would require decisions at the political level – allowing the project to reduce its environmental impact assessment, granting it the status of a project of national importance, and possibly relocating the terminal deeper into the sea. outside the port area.

Michelson pointed out that Skulte LNG Terminal had previously offered the state to participate in the project, but refusals were received. “We have submitted documents, we have talked to everyone. I am afraid that we will look and tell that, again, Estonians have the opportunity to build – we will participate in the Estonian project better than we will build our own,” Michelson said.

According to him, it is understandable that without the involvement of the state the implementation of the project would be considerably more difficult, at the same time as a possible guarantee for the construction of the terminal could be provided by the state decision to completely abandon Russian natural gas,

which would to some extent help to provide the terminal with certain capacities each year, thus providing certainty as to the cost-effectiveness of the project. At the same time, the construction of the project requires long-term guarantees, which would not allow the country to start using the gas pipeline with Russia again in a short time.

The general director of Skulte LNG Terminal said that there are several options for state involvement. The first of them is to use the Klaipeda LNG terminal model, where the state annually participates in the form of tariffs, thus providing the terminal with the minimum usage capacity each season. There is also an option to involve Latvenergo AS or Conexus Baltic Grid (Conexus) in the process.

“We then have a guarantee that this is the minimum. The rest of the other players in the market will come and use it if there is such an initial push from the state that ‘yes, we want this terminal and get involved this way,'” Michelson said.

He stated that the project has several large potential investors who are waiting for a response from the Latvian state before joining the project.

An additional possibility for state involvement is the involvement of state capital companies in the company’s capital. The general director of Skulte LNG Terminal stated that the company would be ready to give the state the opportunity to participate in the company in any way – both as a minority owner and as a majority.

“Let people come to the board and see how transparent it is in general. All the documentation of what we have done so far, including what we have done, has been seen. We just have to sit together and work together to make the terminal here,” Michelson said. .

The General Director of Skulte LNG Terminal also pointed out that the Minister of Economics Jānis Vitenbergs (National Association) as well as the representatives of Latvenergo AS have met with potential investors of Skulte Terminal during their visit to the USA this week. According to Michelson, the meeting was very positive.

According to the information “Firmas.lv”, “Skulte LNG Terminal” was registered in 2016, its share capital is 42,000 euros. The company did not register a turnover last year, but its loss amounted to 438 euros. The website of “Skulte LNG Terminal” states that the real beneficiaries of the company are Arnfins Unums and Pēteris Ragaušs.

CONTEXT:

Another LNG terminal is needed to ensure the energy independence of the Baltic States. Its locations include Paldiski in Estonia, Skulte, Riga, an additional terminal in Klaipeda, etc.

Prime Minister Krišjānis Kariņš (“New Unity”) stated on Thursday in the Latvian Radio program “Krustpunkta” that he sees the possibility that LNG terminal projects could be to drive both in Estonia in Paldiski and in Latvia at the port of Skulte.

At the same time, he stressed that in the case of Skulte terminal, the state is not ready to develop this project with its own resources.

It is also reported that the Estonian government has reached an agreement in principle that the country by the end of the year will refuse to import Russian natural gas. In order to comply with this decision, LNG unloading facilities will be established in the city of the country’s northwestern port of Paldiski and national gas reserves in the amount of one terawatt hour will be purchased, the government’s press service informed.

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