The state is prepared to lift administrative obstacles in the way for the construction of a liquefied natural gas (LNG) terminal in Latvia. The terminal could be given the status of an object of national interest. However, it’s not like it will be possible to build the terminal «climbing over» other interests, said Latvian Minister of Economics Ilze Indriksone.
She mentioned technical specifications are in the works to order evaluation from experts for both LNG terminal projects in Latvia.
The minister stressed this is important because evaluation will include analysis of all possible risks.
«As the state we are prepared to remove all administrative obstacles. However, we will not allow the project to be implemented against residents’ will. This is why we cannot promise the project will climb over other interests. On top of that, we will assess security risks and preservation of natural values. We have to take everything into account if we can,» said Indriksone.
According to her, the first criterion to be considered is state support for the project, which does not require any state guarantees or involvement in financial commitments or funding.
Nevertheless, there is a way to support investors in the creation of gas pipeline connection.
«The question is to what extent and how much this will cost. Investors can establish all possible connections more quickly, because the moment the state is involved the process becomes much longer. There are two important criteria – speed and security of supplies,» said the minister.
When asked if the situation for this year’s and next year’s heating season is so tense because the work group of the Ministry of Economics will be evaluating LNG terminal projects until August, Indriksone said developers have said the hope to become market players by the time the next heating season arrives.
«However, in parallel to evaluation, they also have to keep working on the development of their projects. If investors are prepared to invest regardless of state support, they have to move forward very rapidly. Currently no one prohibits investors from starting, pushing their project’s forward and constructing the terminal,» said Indriksone.
She also said she hopes the LNG terminal in Estonia or Finland will become operational this year.
As previously reported, in June the government in Latvia ordered the Ministry of Economics to perform and in-depth evaluation of LNG terminal projects submitted by JSC Skulte LNG Terminal in Saulkrasti and LLC Kundziņsalas dienvidu projekts in Riga. The ministry has time until 31 August to submit to the Cabinet of Ministers a report that will contain the opinions of independent experts and a full evaluation of the two project’s fitness of Latvia’s economic and national interests. The ministry will pick independent consultants through outsourcing.
Skulte LNG Terminal was registered in 2016. The company’s website mentions its beneficial owners are Arnfins Unums un Pēteris Ragaušs. In the second half of May 2022 JSC Virši-A announced acquisition of 20% of Skulte LNG Terminal shares. Kundziņsalas dienvidu projekts was registered in 2010. The company’s sole owner is US company Millennium Energy Partners LLC and beneficial owner is Laša Šanidze.