Estonian energy company, Alexela, informed it will proceed with the Paldiski LNG project despite not being granted funds by the European Union.
According to the company’s statement, it sought close to €344 million or 39 percent of the total project’s cost from the European Cohesion Fund.
The European Commission that due to the Lithuanian Klaipeda LNG terminal, the Paldiski LNG terminal project is not eligible for European funding.
The company’s board member, Marti Haal said the decision was expected since Lithuania leased its LNG terminal outside the Baltic energy market interconnection plan (BEMIP), influencing the EU’s decision.
Under the BEMIP agreement, Estonian and Finnish governments reached agreements on the location of a regional LNG terminal as well as the Balticconnector project.
Haal added that the company will continue working on the development of the terminal and intends to raise private capital to fund the construction.
Through its unit, Balti Gaas, Alexela intends to build a terminal with a storage capacity of 160,000 cubic meters of LNG with a view of expanding it to 320,000-cbm. In addition, the company plans to add loading facilities for smaller vehicles, trucks and railway wagons.
LNG World News Staff