Energy, Estonia, EU – Baltic States, Gas, Legislation

Iltalehti wrote at the weekend that European Commission Energy Commissioner's Cabinet Chief Michael Hager, who visited Finland last week, had good news for the Finns since the long-term dispute over the location of the liquefied natural gas (LNG) terminal is close to being solved, in favour of Finland.

"Finland would get a big terminal and the Balticconnector linking pipeline (from Inkoo to Paldiski), Estonia would get reservoir or a small terminal," promised Hager.

Hager is convinced that after completion, the new LNG terminal will reduce the price pressure of natural gas primarily in the Baltic States.

Estonian Economy and Communications Ministry estimates however that the main focus of the article in Iltalehti, which claims that the LNG terminal will be built in Finland, is not correct.

"Michael Hager really met on Friday in Helsinki with Estonian and Finnish LNG delegations and he was informed that the developers of the terminals are holding talks and there is hope for a cooperation agreement by the end of May, according to which terminals would be built on both shores (of the Gulf of Finland – ed.)," said the ministry's press adviser Rasmus Ruuda.

He said that the sizes of the terminals were not discussed on Friday and developers say that this part of the negotiations lies still ahead.

In March, Estonian and Finnish economy ministries agreed that two regional liquefied gas terminals would be built, one in Paldiski, Estonia and one in Inkoo, Finland and although there will be two LNG terminals, one company will operate them. The terminals will be developed by Gasum in Finland and Alexela concern in Estonia who have to reach an agreement by the end of May on how things will be organised. The terminals will be linked with the BalticConnector gas pipeline.