Estonia and Finland agreed to lease a floating LNG terminal

The countries plan to lease a floating terminal with a regasification capacity of at least 30 terawatt hours per year. Its cost will be divided in proportion to the amount of gas consumed by the states

Estonian Minister of Economy and Infrastructure Taavi Aas and Finnish Minister of Economic Development Mika Lintilä signed a memorandum of intent on Friday to cooperate in building capacities to receive liquefied natural gas ( CNG), transmits ERR.

“It makes sense for good neighbors to carry out large energy projects across borders. We operate on a common gas market with Finland, and securing a new source of natural gas supply is essential for both of us to strengthen energy security throughout the region and cut off gas consumption in Russia,— Aas said.

The memorandum provides that the joint project will be implemented “as soon as possible, but no later than the end of 2022.”

According to Aas, Finland and Estonia plan to lease a floating terminal with a regasification capacity of at least 30 terawatt-hours per year. The countries will share the cost of the terminal in proportion to the amount of gas consumed, he said. “Now we are working to get by without Russian gas this coming winter. The situation on the European gas market is becoming more and more unpredictable and will change during the day. The decision will depend on the timing of the implementation of long-term market solutions in the region,»,— the politician concluded.

At the end of March, Russian President Vladimir Putin announced the transfer of all payments for gas supplies into rubles, he instructed to apply the measure to “unfriendly countries”— this list includes Finland and Estonia, as well as all other EU countries, the USA, Japan, Micronesia, San Marino, and others. Putin justified his decision by the desire to “refuse to use in such calculations all currencies that have compromised themselves,” which should be achieved , in his opinion, “in the very near future.” The scheme began to operate from April 1.

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Finland and Estonia refused to pay for gas under the new scheme. According to the Finnish Minister for European Affairs and Corporate Governance Titti Tuppurainen, the decision was made in accordance with the recommendations of the European Commission, which considered such a measure a breach of contracts. The minister added that Finland is striving to stop importing gas from Russia as soon as possible.

April 27 Gazprom announced the suspension of gas supplies to Poland and Bulgaria. As explained in the company, “Bulgargaz” (Bulgaria) and PGNiG (Poland) refused to pay for further gas supplies in rubles, as required by Russian law. At Gazprom also warned that in the event of unauthorized withdrawal of Russian gas from transit volumes to third countries, supplies for transit will be reduced by this volume. Gas transit there was promised to be resumed at the time of payment made according to the new procedure.

Earlier, The Washington Post, citing three American officials, reported that US President Joe Biden and European leaders are going to announce the supply of LNG to Europe. The fact that the EU and the US are discussing the supply of American LNG and hydrogen was also reported by Bloomberg. The agreement is planned for two years, the agency clarified.

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