Energy, Gas, Latvia, Transport

Balodis' presentation mentioned Riga, Ventspils, Liepaja and Vidzeme coastline as the possible locations for the construction of LNG terminal.

Riga has a large number of natural gas consumers, which account for about 60% of Latvia's natural gas consumption. The terminal could be built on the delta of the Daugava River. However, there are significant restrictions on the development of natural gas pipeline system in Riga.

Ventspils has a well-developed infrastructure for the construction of an LNG terminal near the Northern Pier, however, if the terminal is built in Ventspils, a natural gas pipeline would also have to be built to connect Ventspils and Dobele, says Balodis' presentation.

In Liepaja, the city's port would have to be dredged deeper so the terminal could be built there. Latvenergo also notes that the current Liepaja-Dobele natural gas pipeline cannot transport enough gas for full-scale operation of the terminal.

Vidzeme coastline, on the other hand, is well suited for building an LNG terminal that would be able to handle large amounts of liquefied natural gas – it is near Incukalns underground gas storage facility and the Riga-Incukalns gas pipeline.

Balodis' presentation also mentioned that the LNG terminal may be built on as well as off land.

Latvenergo also informs that LNG cost has been gradually reducing the pats 20 years, from around USD 700 per ton to USD 400 per ton in 2010, and the price is expected to decrease further. On the other hand, oil prices are predicted to continue rising.

As reported, the Economy Ministry previously said that the LNG terminal should be built at Riga Port, whereas Ventspils Mayor Aivars Lembergs said there were two possible locations for the LNG terminal – Riga and Ventspils.