On Thursday, 29 September, Latvia’s parliament passed in the final reading the legislative draft from the government and Ministry of Economics that provides status of an object of national interest to the planned Skulte liquefied natural gas (LNG) terminal, its pipeline connection with the country’s existing transmission system and linked infrastructure.
During debates multiple members of the opposition criticized the law, mentioning risks that would negatively impact local residents.
The passed law On Skulte LNG Terminal details provision of status of object of national interest in order to prevent possible administrative obstacles and uncertainties in relation, as well as to ensure timely construction of the terminal.
According to the Ministry of Economics, because the launch of a national LNG terminal in a relatively short period of time will play a major role for secure supplies of gas to Latvia, it is necessary to introduce special regulations that will affirm national interests for the construction of Skulte LNG terminal and simplify the administrative procedure for the project’s evaluation and implementation.
The objective of the law is enhancing the security of energy supplies to Latvia through successful implementation of Skulte LNG terminal project.
The law also states that the terminal and linked infrastructure are to be commissioned by 15 September 2024.
As previously reported, Latvia’s government initially asked the Ministry of Economics to perform an in-depth evaluation of LNG terminal projects submitted by Skulte LNG Terminal JSC and Kundziņsalas dienvidu projekts LLC in Riga. The government later approved Skulte LNG terminal project.
Skulte LNG Terminal was registered in 2016. The company’s website mentions that the company’s beneficial owners are Arnfins Unums and Pēteris Ragaušs. At the same time, in May 2022 fuel trader Virši-A JSC announced the purchase of 20% of shares in Skulte LNG Terminal.
Creation of an LNG terminal is important in the context of Latvia’s energy independence.
At a Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee Skulte LNG Terminal’s director general Renārs Miķelsons explained that it will not be possible to complete the LNG terminal project by mid-September 2024 without simplifying the environment evaluation procedure.
He said currently environmental regulations include very detailed requirement. On top of that, it is necessary to perform large scale modelling of technical risks that can cause a potential domino effect. It would be a very time-consuming process that would require at least a year. During this time it will not be possible to commence the project’s design process, said Miķelsons.