Estonia's main port operator and the country's electricity grid operator have signed an agreement to study the building of a new liquefied national gas (LNG) terminal to diversify supply away from Russia, they said on Tuesday, Reuters reports. The state-owned companies said in a statement they were following up on a consultant's report released last week, which said a fundamental requirement for the development of the local gas market was access to alternative suppliers of gas through a LNG terminal.
"The LNG terminal is one of the major issues facing Estonia in ensuring security of energy supply, as is the creation of proper competition in the gas market," Taavi Veskimagi, head of grid company Elering, said in a statement.
The companies said they were seeking EU funding for the project.
The plan could provide competition to an LNG terminal which southern neighbour Latvia says it should host and which also needs EU funds.
Russia is the sole natural gas supplier to all three Baltic states. The dominant shareholders in the domestic gas companies are Gazprom and Germany's E.ON.
The Estonian government is considering how to separate the gas distribution network from gas supply to meet European Commission competition directives.
"The LNG terminal is one of the major issues facing Estonia in ensuring security of energy supply, as is the creation of proper competition in the gas market," Taavi Veskimagi, head of grid company Elering, said in a statement.
The companies said they were seeking EU funding for the project.
The plan could provide competition to an LNG terminal which southern neighbour Latvia says it should host and which also needs EU funds.
Russia is the sole natural gas supplier to all three Baltic states. The dominant shareholders in the domestic gas companies are Gazprom and Germany's E.ON.
The Estonian government is considering how to separate the gas distribution network from gas supply to meet European Commission competition directives.