Latvian Stevedoring Company Association (LSA) reports that it has turned to the government with their own proposal for the construction of a liquefied natural gas (LNG) terminal in the country.
The project needs to be implemented as an international and transparent procurement. I also needs to include the country’s strategic interests. It is important to keep in mind priorities of the green course and the current situation in the country, when gas consumption is down significantly.
LSA stresses that a modern LNG terminal
must be able to not only import gas but also export Latvia’s green energy resources.
This is why LSA invites the government to present to the sector the risk report from independent Pricewaterhouse Coopers in regards to the LNG terminal project.
Businessmen interviewed by LSA that work on development and maintenance of LNG terminals see justified potential for such a project at one of Latvia’s large ports – Ventspils, Riga and Liepaja. All three of these sea ports have appropriate infrastructure for that.
According to information from LSA, Riga or Ventspils would be the most appropriate locations for the project when it comes to Latvia’s interests. On top of that, Ventspils already has a technically complete LNG terminal project developed by Ernst & Young in 2012.
The association reminds that it, representing businessmen of Ventspils, Riga and Liepaja, has followed LNG infrastructure development plans for several years. Following the announcement from the government in regards to the possible creation of a terminal, sea ports have been involved in discussions from day one, representing Latvian and international businessmen with practical experience and technical capacity in developing such projects.
Following an invitation from the Ministry of Economics, LSA participated in an independent commission that studied applications submitted for the tender announced in April 2022.
Thanks to the overall professionalism in LSA it was possible to outline significant qualities any LNG terminal must have: tugs, special platforms, and, in Skulte’s case, an icebreaker.
Making the tender international was the correct choice, stresses LSA. Participation in the tender – without clear documents and state plans with application submission terms between April 2022 and 13 May 2022 – failed to get any major international investors interested. It is not possible to prepare a well-constructed project based on economically justified calculations in such a short period of time.
LSA Council Chairman Āris Ozoliņš notes: «The sea port sector wants to stress to Latvia’s society that it is necessary for there to be a clear prediction for gas consumption in a long-term perspective (up to 15 years). It is also necessary to keep in mind the binding long-term EU goals for the diversification of energy resources binding to Latvia. This includes the LNG terminals our neighbours have and provide very high output.»
This is why LSA invites the government to use the opportunity and create a truly modern LNT infrastructure. The kind of infrastructure that can be used for gas imports, ship refilling and, in a long-term perspective – exports of Latvia’s green energy. The potential is also confirmed by the head of Latvia’s Renewable Energy Federation Jānis Irbe: «We will need infrastructure to be able to export green energy generated in Latvia in the coming years».
Sea port businessmen still cannot see any clear reasons why Skulte project specifically was provided with status of a project of national interest.
Latvia’s sea port sector is interested in seeing the most economically beneficial and valuable LNG project, LSA concludes.
Also read: Latvian PM says Skulte gas terminal’s construction may be financed by the state