The tanker that will store and carry liquefied natural gas (LNG) will be stationed in Finland’s Inga, not Estonia’s Paldiski, as announced by Estonian Minister of Economics and Infrastructure Riina Sikkut.
«Today we have truly reached an agreement in this matter,» Sikkut told ERR after she and her Finnish colleague Mika Lintilä visited Paldiski, where, similarly to Inga, construction of an LNG terminal is underway.
Sikkut admitted that it became clear to her that the tanker ship would be stationed in Finland as early as July, when she became minister.
«Estonia will complete its berth sooner, and it is in our strategic interests to ensure the ship is stationed here [in Paldiski],» the minister said.
In spring Estonia and Finland agreed the ship will be stationed in the country that finishes its terminal first. Estonia plans to complete its terminal in Paldiski by November, whereas Finland plans to complete its terminal by December.
However, according to Sikkut, Finland has made it clear how much the situation in Finland has changed since spring – Russia ceased providing gas and after the explosions with Nord Stream pipeline there are now concerns about the security of Balticconnector pipeline connecting Inda and Paldiski.
«But considering concerns about the price of electricity, it is expected to be low in Estonia and Baltic States in general if Finland produces enough of it [electricity],» explained the minister.
«Finland has gas power stations with power output of about 600 MWh, which is something Estonia lacks. This is why Finland needs this ship to ensure security of supplies, and they need it close by. This is something we agreed upon with our Finnish colleague,» said Sikkut.
The agreement between Estonia and Finland provides Estonian gas traders pre-purchase rights for a specific amount of LNG carried by the tanker ship to sell in Estonia.
At the end of September Sikkut reported that Estonia needs its own LNG tanker ship stationed in Paldiski. She added that one could be rented this winter.
Storage and re-gasification tanker Exemplar owned by U.S. company Excelerate Energy is currently in dry dock in Spain – the vessel is being prepared for operations during winter conditions.
The ship will be servicing Finland, Estonia and other Baltic States for the next ten years following the signing of a contract between the American company and Finnish gas system’s operator Gasgrid Finland. It is estimated that this will cost EUR 460 million in the next ten years, adding to that are the unstable costs depending on the volume of supplied gas.