Energy, Estonia, Gas, Good for Business, Legislation, Lithuania

Klaipedos Nafta and JetGas signed a protocol of intent yesterday, according to which the Estonians get the right to use the Lithuanian LNG terminal as a place of storage and reloading of their gas shipments.

"Currently Lithuanians do not have the capability to sell LNG, but they will build a special additional device for that when they get a sufficient number of customers," said board member of JetGas Janek Parkman. "We're currently seeking clients in Lithuania and Latvia and would use Klaipeda terminal services to service them."

For Lithuanians the contract with JetGas became the first of its kind, and they hope to achieve success in the near future at other neighbouring markets. "This agreement is another example of how Estonian business works reasonably and consistently to utilize the LNG capacities in the region and to expand small-scale LNG activities," said head of Klaipedos Nafta Mantas Bartushka.

In order to service Estonian clients, JetGas wants to build a small, 2,000 cubic metre LNG terminal in Muuga with the cost of 5-6 million euros.

JetGas wants to build the terminal in the Port of Muuga next to the coal terminal, the same place where Dutch company Vopak plans to build a terminal that is in its first stage of development almost ten times larger.

Parkman commented that they intend to launch the terminal already in 2017. If Vopak intends to build its big terminal, then they can move elsewhere or start working through their terminal.

Vopak E.O.S. Manager Arnout Lugtmeijer said that he is aware of JetGas, but does not wish to comment upon their intentions.