On Friday, 20 May, JSC Virši-A (Virši) signed a contract with JSC Skulte LNG Terminal on the acquisition of 20% of the company’s shares. Plans were announced to jointly develop the liquefied natural gas (LNG) terminal at Skulte sea port, as reported by Virši.
The company notes that Skulte LNG terminal project has a unique geographical, economic and technological advantages. It is necessary to build a 34 km long and direct pipeline connection to connect to Inčukalns underground gas storage facility, but there is no need to invest in LNG storage infrastructure, which normally takes up to 70-80% of investment volumes.
«LNG terminal is a topic of Latvia’s energy independence. Virši, as domestic capital energy company, wants to contribute to the diversification of the country’s energy supplies. Virši’s participation in the development of Skulte project is a rational step towards reaching a strategic goal – becoming an energy company,» says JSC Virši-A board chairman and CEO Jānis Vība.
He continued: «After carefully studying the location of the LNG terminal and financial model, we have concluded that cost and functionality-wise it is the most appropriate path for importing gas in Baltic States. This is why we have decided to support the development of this infrastructure project by joining as shareholders. We are confident Latvian residents and companies will benefit from this project.»
JSC Skulte LNG Terminal director general Renārs Miķelsons said: «We are happy Virši has decided to join Skulte project as national capital energy company. It is strong proof of Skulte terminal’s place in the region’s energy map. It will help residents and companies receive gas for attractive prices. Virši’s experience and output will help speed up the project.»
Miķelsons added that JSC Skulte LNG Terminal also continues talks with a previously selected foreign industrial investors group to secure the most attractive conditions for the project on Latvia’s and the region’s markets.
Vība explained that Virši concluded after studying and developing different energy solutions that there is perspectives for methane, bio-methane and natural gas consumption in the region.
«This trend will remain among industrial users, households and in the transport sector. LNG terminal in Skulte together with Inčukalns underground gas storage facility would prove a great tandem not just for Latvia’s domestic consumption but also creating a competitive natural gas supply chain for the region, which includes Baltic States, Finland and Poland.»