Construction, Energy, Estonia, Investments, Port, Transport

The memorandum of understanding was signed for finding the best solutions for the development and implementation of a LNG terminal and servicing LNG tankers and bunkers as well as establishing port facilities for loading and unloading LNG on the Pakri peninsula by the Lahepere Bay in Paldiski, Tallinna Sadam told the stock exchange.

Marti Haal, chairman of the management board of Alexela Invest, said that by establishing the LNG terminal next to Balticconnector pipeline in Paldiski, Estonia will become a significant partner in ensuring the security of supply of natural gas for the entire region.

"The Paldiski LNG terminal is an energy infrastructure of international importance, which with the launch of a joint gas market of Finland, Estonia and Latvia from 2020 will offer an alternative supply source opportunity and acts as prerequisite for the emergence of free competition and the launch of Balticconnector," he said.

"Tallinna Sadam is interested in participating in those initiatives directed at the implementation of environmentally friendly technology in maritime activity and this is why we are seriously considering participating in the given project as a port operator," Tallinna Sadam CEO Valdo Kalm said.

Tallinna Sadam and Alexela will continue to negotiate the conditions for joint activities with the aim of reaching the contract by the end of 2020. According to the memorandum of understanding, the responsibility of Tallinna Sadam in participating in the Paldiski LNG terminal project would be the development and maintenance of the necessary port facilities and Alexela would be responsible for the establishment and operation of the terminal.