Infortar joins Alexela’s Paldiski LNG import project in Estonia

Estonian investment firm Infortar is joining forces with compatriot energy company Alexela to develop the FSRU-based LNG import terminal in Paldiski, as the country looks to phase out Russian gas supplies.

The common goal of the two Estonian companies is to launch the LNG terminal by November this year and thus ensure the security of supply to consumers, Alexela and Infortar said in a joint statement last week.

Earlier this month, Estonia and Finland agreed to jointly charter one floating storage and regasification unit (FSRU) to import LNG.

The two countries have agreed to build jetties on both sides of the Gulf of Finland, in Paldiski in Estonia and Inkoo in Finland.

FSRU charter and infrastructure work

Alexela has been working on the Paldiski LNG import terminal for years.

According to the new joint statement, the project includes two stages.

The first phase includes the construction of a connection between the jetty and Balticconnector pipeline, as well as the charter of the FSRU.

Also, the partners would build a “permanent solution for the terminal” in the second phase.

The statement said the cost of the terminal infrastructure for the first phase would reach 40 million euros ($43.2 million).

This month, dredging and construction of the mooring pit will begin in Pakrineeme as well.

“Negotiations are underway on the lease of a floating terminal, a tender for construction will be completed in the coming days, and the first prepayments for the supply of building materials have been made,” the statement said.

Alexela and Infortar did not reveal the planned capacity of the development.

Estonia, Finland, and Latvia

The two firms are also cooperating with Latvian and Finnish market participants to “ensure energy security in all three countries in the coming heating period.”

In addition to Estonia, the Paldiski LNG terminal would cover at least 80 percent of Finland’s gas needs, the statement said.

Alexela and Infortar are already partners in Eesti Biogas, the largest biomethane company in Estonia.

Besides the Paldiski terminal, Alexela is developing the Hamina LNG import terminal in Finland which should go online this year.

On the other side, Infortar has LNG shipping and fueling experience via Eesti Gaas and Tallink. This includes Estonia’s first LNG bunkering vessel, Optimus.

“In our opinion, the Paldiski LNG terminal must be a public terminal and other market participants and investors are also expected to join it,” said Heiti Hääl, chairman of Alexela’s supervisory board.

“If the government sets a deadline for giving up Russian gas and Elering builds a pipeline connection, the private sector will be able to solve the problem and start the terminal by the beginning of this year’s heating season,” he said.

- Advertisements -

Most Popular

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

Dynagas FSRU ready to start Stade job

The 174,000-cbm FSRU Transgas Force, owned by Dynagas, has left Germany's Bremerhaven and will now work as an LNG...

VTTI and Hoegh LNG join forces on Dutch FSRU terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, is joining forces with FSRU player Hoegh LNG...

More News Like This

Lithuania’s KN says Klaipeda FSRU capacity fully booked until 2033

Lithuania’s KN said companies have booked all of the offered regasification capacities at its 170,000-cbm FSRU Independence in Klaipeda...

Finland-Estonia gas pipeline to get capacity boost

Finland’s gas system and LNG terminal operator, Gasgrid, and Estonian gas system operator, Elering, have revealed plans to boost...

Eesti Gaas to deliver three more LNG cargoes to Finland’s Inkoo FSRU

Eesti Gas, a unit of Estonian investment firm Infortar, said it will deliver three more LNG cargoes to Finland’s...

Eesti Gaas to deliver additional LNG cargo to Finland’s Inkoo FSRU

Eesti Gas, a unit of Estonian investment firm Infortar, said it will bring an additional US LNG cargo to...