Latvia's LNG Terminal Plan Stalled
05.03.2023 By TankTerminals.com - NEWS

May 3, 2023[LSM.lv]- This week Estonia’s climate minister Kristen Michal announced that Latvia and Estonia are preparing an agreement that would allow joint purchases of liquefied natural gas in the event of a shortage.

 

Meanwhile, the Latvian Ministry of Climate and Energy reported that nine terawatt-hours of natural gas are waiting for use in Inčukalns storage, which is two terawatt-hours more than a year ago. The country has, however, reserved two terawatt-hours for unsafe times from this volume, and this would be enough for about a quarter of what it needs for the whole season.

Prices have now fallen significantly and experts are also predicting a rise in gas consumption. Minister for Climate and Energy Raimonds Čudars said the transshipment capacity of already existing Baltic and Finnish terminals is twice as high as consumption.

“At the same time, we may have a situation where, for some technical reasons, gas supplies can be difficult. This is where the government is working with our northern counterparts from Estonia on the possible emergency use of the Paldiski terminal in a situation where, for some technical, unexpected reasons, natural gas supplies to the region would be difficult,” the minister said.

In times of uncertainty a year ago, there were talks that the government would contribute to the development of the Latvian Skulte LNG terminal with budget money. Now the government has stepped back from cooperation, and the project has been frozen, said its chief executive Uldis Salmiņš.

“It’s not that we are announcing the suspension of the project, but it’s true that in such circumstances we find it difficult to persuade investors to make active investments at a rapid pace. There is no political support for such a project at the moment, despite the adoption of the law and the government’s decision at the time,” Salmiņš explained.

He believes the government will have made a mistake. He stated that Klaipeda has announced fully sold capacity for the next 10 years, while Finland’s terminal capacity will be needed to supply all of Finland and Estonia. Developers of the Skulteproject forecast that Latvia will need up to 16 terawatt-hours of gas per season in the medium term, which would be near double the previous frugal season.

The energy expert Juris Ozoliņš estimated that the government had done the right thing in the past after the chaotic decisions.

“At the moment, the question of Skulte is an absolutely economic question whether anyone is interested in it or not. Because we have full access to a terminal. Assets always pay money, and asset maintenance also pays money,” Ozolins said.

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Sempra Targets Cameron LNG Expansion FID in H1 2025
02.29.2024 - NEWS
February 29, 2024 [LNG Prime]- US LNG exporter Sempra Infrastructure, a unit of Sempra, expects t... Read More
Gastrade: Greece’s first FSRU to Start Commercial Ops by End of April
02.29.2024 - NEWS
February 29, 2024 [LNG Prime]- Greece’s Gastrade expects to launch commercial operations at its... Read More
NFE Expects to Launch Altamira LNG Production in March
02.29.2024 - NEWS
February 29, 2024 [LNG Prime]- US LNG firm New Fortress Energy expects to start production of liq... Read More
Commonwealth LNG Pushes Back FID to H1 2025
02.29.2024 - NEWS
February 29, 2024 [LNG Prime]- Commonwealth LNG has postponed a final investment decision on its ... Read More