Sillamae LNG terminal plans abandoned

Sillamae LNG terminal plans abandoned

Dreams of a Sillamäe LNG terminal came to an end as Gazprom decided not to pursue the idea of the gas transit project.

According to the head of Sillgas, Endel Siff, the Sillamäe terminal could have become, besides the Ust-Luga port, Gazprom’s gas transit project, but, with the European Union’s sanctions in place, Gazprom decided not to expand in the direction of Estonia, reports the Estonian Postimees.

According to the original plan, the Sillamäe terminal would process Gazprom’s pipeline gas into LNG with accompanying storage facilities. The planned capacity of the terminal was at 2.3 mtpa.

The Sillamäe port representative, Andrei Birov, said that the port is not negotiating with new investors since Sillgas’ construction rights contract expired last year.

He does believe that that LNG has a future in regards to ship bunkering facilities claiming that one terminal will be surely built, either in Muuga or in the port of Sillamäe.

According to reports, Alexela and Vopak LNG, have voiced their readiness to continue with their plans for LNG terminal in Paldiski and a small ship bunkering terminal in Muuga, respectively.

The Muuga LNG terminal could be operational at the end of 2017.

LNG World News Staff; Image: Port of Sillamäe

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