Construction progresses on Estonia’s Paldiski LNG import terminal

Estonian energy company Alexela and compatriot investment firm Infortar are moving forward with construction works on the Paldiski LNG import facility, as the country looks to phase out Russian gas supplies.

The two firms joined forces in April this year on the development which will feature a chartered floating storage and regasification unit (FSRU), a jetty, and a connection with the Balticconnector pipeline. They plan a second phase as well to build a permanent solution for the terminal.

According to the duo, the cost of the terminal infrastructure for the first phase would reach 40 million euros ($42.9 million).

Alexela said in a update on Friday that Jan de Nul’s 2012-built trailing hopper suction dredger, Pedro Alvares Cabral, has completed dredging of the seabed at the Paldiski LNG terminal.

The works in Lahepere Bay lasted in total of ten days, less then previously expected, Alexela said.

“We have launched the construction of the terminal in good faith with the aim of achieving security of supply, and we will do everything in our power to create a real alternative to Russian gas this autumn and to ensure gas supply for every household and industry,” Marti Haal, Alexela’s board member, said.

Martti Talgre, CEO of Infortar, said the next step includes building the mooring point, which would be completed by September 1.

“As the dredging went faster than planned, we are confident and even ahead of our schedule,” Talgre said.

Elering to start work on connecting pipeline

In a separate statement, Estonia’s gas system operator Elering said it would start construction work on the connecting pipeline in the “near future” after it agrees on the final details with the private sector.

Alexela’s Conx PM has been working on the design work for the construction of the pipeline for months, the firm said.

As per the FSRU, Estonia and Finland previously revealed plans to jointly charter an FSRU to import LNG.

Gasgrid Finland and Elering signed a cooperation deal on May 4 to set out the terms for the joint charter of the unit which would serve both countries.

After that, Gasgrid signed a 10-year deal to charter one FSRU from US LNG player Excelerate.

Under the charter deal, Excelerate will provide its 150,900-cbm Exemplar which can supply more than 5 billion cubic meters per year of regasification capacity.

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