Prime Minister Ratas: We need a cost-effective and sustainable solution to ensure the gas supply of the Baltic states

May 10
Created: 10 May 2017

Prime Minister of Estonia Jüri Ratas, Prime Minister of Latvia Māris Kučinskis and Prime Minister of Lithuania Saulius Skvernelis visited Paldiski in order to learn about Alexela’s liquefied petroleum gas terminal that is being built there, and to discuss the construction of a regional LNG terminal. 

read more

Prime Minister Ratas emphasised that it was a common goal of the Baltic states to ensure a diverse and secure gas supply to the Baltic states. To this end, Estonia has proceeded from the position that the regional LNG terminal should be established on the basis of market logics. “The regional LNG solution must be cost-effective and sustainable in the long term, and I believe this would be ensured by a LNG terminal project that is undertaken by private investors,” Ratas said.

In regard to the location of the regional LNG terminal, Prime Minister Ratas said the government of Estonia and the Estonian developers had proceeded from the decisions made and analyses conducted at both regional and European Union level. The study ordered by the European Commission found that the coast of the Gulf of Finland would be the best place to construct a regional LNG terminal. “When we speak of long-term solutions, the most reasonable would be to construct the terminal here, in Paldiski, for example,” Ratas added.

The proposed regional LNG terminal on the coast of the Gulf of Finland is an important element in a package that also includes the Baltic Connector gas interconnection between Estonia and Finland, and the GIPL gas interconnection between Lithuania and Poland. This list of major gas infrastructure projects was agreed upon in 2013 with the aim of connecting the Baltic states and Finland to the single gas market of the EU, thereby creating opportunities for diversifying gas supply sources.