Commissioning of the regional LNG terminal reception readiness in Paldiski

The project has been agreed upon within the BEMIP framework, identified in TEN-E strategy and included by the European Commission in the previous PCI list as a regional cluster, together with the Balticconnector. The project is consistent with the EU law and contributes to the implementation of the EU priorities and agreed policy targets in the energy sector (namely security of supply, diversification, competitiveness and sustainability

Studies completed within BEMIP framework (Booz&Co 2012 etc.) and by the regional TSO’s (Frontier 2014) have identified the positive impact for the regional gas market development when the regional LNG terminal project either in Finland or in Estonia is commissioned. Practice has shown that an LNG terminal located in the southern border of the future regional gas market would not be able to satisfy the needs of the northern part of the regional gas market. Therefore, a regional LNG terminal that will complement the GIPL, Balticconnector pipelines and Inčukalns UGS, is needed in the middle of the future regional gas market. The GIPL, Balticconnector pipelines and Inčukalns UGS altogether will be able to create a long-term and most competitive gas supply security and a diversification infrastructure in the Finnish-Baltic region. According to the CBA of the regional LNG terminal in the Republic of Estonia, the commissioning of the Paldiski LNG terminal generates approximately 1 billion euros socio-economic net benefits (reduction of GHG emissions etc.) to the Republic of Finland, the Republic of Estonia and the Republic of Latvia within the first 15 years of operations.

By building this new infrastructure at the landfall of the Balticconnector existing pipeline gas, the consumers of the region and the rapidly developing new off-grid maritime and transport markets will enjoy the cost-benefits of centrally located and logistically most feasible regional LNG hub with the potential to develop a regional H2 hub (see below in comments).

Alexela Group (promoter of Paldiski LNG terminal, developer/operator of the Hamina LNG terminal in Finland, Slovaag Oil terminal in Norway, Paldiski LPG and Sillamäe Oil terminals in Estonia) www.alexela.ee.