February 20, 2013 13:45
Eesti Gaas, Gasum propose Baltic LNG terminal in Finland
TALLINN. Feb 20 (Interfax) - Estonia's Eesti Gaas AS and Finland's Gasum believe the proposed Baltic regional LNG terminal should be built in Finland.
Gasum signed an agreement to that effect in Tallinn with an Eesti Gaas subsidiary, EG Vîrguteenus, and notified the governments of both countries.
Finland is the best location for the terminal because it uses more natural gas than any of the three Baltic States.
The optimal site is in Inga, 40 kilometers west of Helsinki.
The EU believes the terminal for its Eastern Baltic member states should be built either in Finland or Estonia, based on a study carried out by the consulting firm Booz & Company for the European Commission. The terminal would free the three Baltic States and Finland from reliance on Russian Gazprom (RTS: GAZP), which currently provides 100% of the natural gas they consume.
The three Baltic States originally conceived the idea of building the regional terminal but so far have been unable to agree their positions, which is a condition to receive co-financing for the project from the EU.
Lithuania's Klaipedos nafta is already implementing a project to build an LNG terminal at Klaipeda. Lithuania says construction of the terminal will go ahead regardless of the regional LNG terminal project.
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