Baltic, Competition, Energy, Estonia, EU – Baltic States, Gas, Gas Market

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 00:59

Estonian PM: Ensuring gas supply in Baltics requires equal competition

BC, Vilnius, 09.06.2017.Print version
Equal competition and best price for consumers are the preconditions for ensuring gas supply in the Baltics, Estonian Prime Minister Juri Ratas said on Friday after discussing the issue of the regional terminal for liquefied natural gas (LNG) with his Latvian and Lithuanian counterparts in Klaipeda, Lithuania, informed LETA/BNS.

Ratas, Latvian Prime Minister Maris Kucinskis and Lithuanian Prime Minister Saulius Skvernelis visited Klaipeda to discuss the issues relating to the regional LNG terminal. After their visit to Paldiski in northwestern Estonia, this was the second joint visit made by the three Baltic prime ministers to learn about gas infrastructure elements in the Baltic states, spokespeople for the Estonian government said.


The prime minister emphasized that Estonia supports moving forward with the plan for the terminal. "The floating terminal rented by Lithuania for the Port of Klaipeda provided a quick solution, but the common interest of the Baltic states to construct a regional LNG terminal, which would diversify sources of supply and ensure the stable and secure supply of gas to the Baltic states, would be the long-term solution," Ratas said.


He said that Estonia is ready to discuss various cooperation formats, but in order to find a long-term solution, equal competition possibilities should be ensured for different projects. "The situation where gas consumption in the region is decreasing is a challenge to developers, but also makes them look for the most cost-effective solutions," said Ratas, adding that any long-term solution should be based on market logic. "Estonia does not wish to support the construction of the terminals with taxpayers' money through the gas tariff; this issue must be solved by the private sector with its own investments."


When it comes to the location of the terminal, the Estonian government and local developers have taken into account the decisions and analyses that have been made both at the regional and the European Union level. According to the study ordered by the European Commission, the best location for the regional liquefied natural gas terminal is on the coast of the Gulf of Finland, said Ratas. "As Finland decided not to build the terminal, it must be constructed in either Muuga or Paldiski," Ratas said, and added that this decision has been approved also by the Baltic heads of government.


According to the Estonian prime minister, the Baltic states share a common interest in implementing regional transport and energy projects. As examples of this, he named Rail Baltic, the gas connections about to be built, and the synchronization of power systems with those of Europe. "The planned projects are a good example of the constructive cooperation between the Baltic states to boost the economy and enhance regional cooperation and security."


A regional LNG terminal on the coast of the Gulf of Finland is one element in the package that includes Baltic Connector, the gas interconnection between Estonia and Finland, and GIPL, the gas connection between Lithuania and Poland. This list of important infrastructure projects was agreed upon already in 2013, with the aim of connecting the Baltic states and Finland with the common gas market of the EU and creating possibilities to diversify sources of gas supply.

 






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