Estonia will ask EU financing for LNG terminal in Paldiski

Wednesday, 14 October 2015

Estonian Economy and Infrastructure Minister Kristen Michal gave approval to three projects to be submitted to the Connecting Europe Facility (CEF) energy applications round: Balticconnector gas pipeline, Karksi compressor station and Paldiski liquefied natural gas (LNG) terminal, Postimees Online reports.

The Paldiski LNG terminal application was submitted to the Ministry by OÜ Balti Gaas. The ministry said that building the liquefied natural gas terminal would bring to the region's gas market a new source of supply, thus increasing competition in the gas market and the security of energy supply.

The Estonian state does not plan to invest in the terminal project, the ministry added.

Money is applied also for Balticconnector, whose estimated cost is 250 million euros. Estonia's share is roughly 130 million. The pipeline's length is 47 kilometres on the Estonian shore, the underwater part of the pipeline is 81 km long and on the Finnish mainland, 20 kilometres long. The expected building period is 2016-2019; the owner and coordinator of the project is the state-owned Elering Gaas from the Estonian side and Baltic Connector OY from the Finnish side.

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