Liquefied natural gas terminal idea progresses in Latvia

Latvian government has reached a conceptual agreement on discontinuation of use of Russian natural gas and the construction of a liquefied gas terminal (LNG) in the country, as Minister of Economics Jānis Vitenbergs told journalists after a meeting of the government on Tuesday, 19 April.
He said it is planned to add relevant requirements to the Energy Law. Vitenbergs explained that the most believable estimate for the term under which Latvia may discontinue using Russian gas is 1 January 2023. This much was previously discussed with Estonian partners, the minister said.
He added that this step will be possible once Paldiski LNG terminal in Estonia is operational. This will make Baltic States the first region in Europe to have stopped using Russian gas entirely.
As for the construction of an LNG terminal in Latvia, Vitenbergs said the most believable term for the project’s completion is the end of 2023 or the start of 2024.
The government gave the Ministry of Economics time until 31 May to prepare a report on a potential location of the terminal, potential benefits and costs.
«We will propose to the state the most optimal and cost-effective solution to ensure supplies of natural gas. From the perspective of the state it is important to ensure such projects are implemented with the lowest possible involvement from the state. Project implementation time is also a major issue,» said the minister.
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Vitenbergs also said that a short-term solution will be developed in cooperation with Estonia and Finland, so that the Paldisku LNG terminal project succeeds, since currently it is the only way to ensure additional gas supplies for the region this season.
Latvian government delegated Vitenbergs for talks with Estonia and Finland about the project’s progress.
It is planned that Latvia’s minister will sign a legally and financially non-binding joint memorandum of understanding with his Estonian and Finnish counterparts in order to commence in-depth cooperation with the project’s implementation.
On 6 April Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee supported the proposal to outline in the Energy Law the prohibition to import natural gas from Russia. For the legislative draft to come to force, it needs to be passed in the second and third reading by the committee and Saeima.