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Estonia: Port of Tallinn and investor mulls LNG terminal, bunker ops

05 Nov 2018

AS Tallinna Sadam, also known as the Port of Tallinn, has entered into a memorandum of understanding (MoU) with AS Alexela Invest to consider the development and implementation of an liquefied natural gas (LNG) terminal on the Pakri peninsula by the Lahepere bay in Paldiski, north-western Estonia.

The LNG terminal will offer port facilities for loading and unloading of LNG from carriers and offer LNG as a bunker fuel.

Under the MoU, Tallinna Sadam and Alexela will continue negotiation over the conditions for joint activities by the end of 2020.

Tallinna Sadam will be responsible for the development and maintenance of the necessary port facilities at the proposed Paldiski LNG terminal project, while Alexela will oversee the establishment and operation of the terminal.

The establishment of an LNG terminal in Paldiski, Estonia is an important step in ensuring the security of supply of natural gas throughout the region, says Marta Hääle, chairman of the management board of Alexela Invest.

“The Paldiski LNG terminal is an energy infrastructure of international importance, which offers the opportunity for a joint supply of gas from Finland, Estonia and Latvia from 2020 and is a prerequisite for the creation of free competition and the launch of Balticconnector,” he says.

More and more shipping companies in the Baltic Sea and in the world are increasingly replacing traditional diesel fuel with significantly cleaner LNG as fuel for their vessels, notes Valdas Kalm, Chairman of the Board of the Tallinn Port.

“The Port of Tallinn is interested in contributing to the initiatives aimed at the introduction of environmentally friendly technologies in the maritime sector and therefore we are very seriously considering the participation in this project as a port harbour,” he explains.

Tallinna Sadam is among of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2017 serviced 10.6 million passengers and 19.2 million tons of cargo.

In addition to passenger and freight services, the Tallinna Sadam group also operates in shipping business via its subsidiaries. OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, while OÜ TS Shipping charters its multifunctional vessel m/v Botnica for icebreaking and construction services in Estonia and offshore projects abroad. 

Published: 5 November, 2018

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