Baltic, Competition, Energy, Estonia, EU – Baltic States, Gas, Gas Market
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Friday, 29.03.2024, 00:59
Estonian PM: Ensuring gas supply in Baltics requires equal competition
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.