EU to finance construction of LNG terminal only with involvement of all Baltic states
RIGA. July 18 (Interfax) - The European Union will not co-finance a the construction of a LNG (liquefied natural gas) terminal if an agreement is not reached for involving all Baltic states in the project, the head of the European Commission's office in Latvia, Inna Steinbuka, told Interfax.
"If there is no agreement for the three Baltic countries, nothing will happen. The European Union will not provide cofinancing. The main idea for this terminal is reducing Latvia and other Baltic countries' dependence on the Russian energy system. But I again want to stress that all three countries should participate. If each hogs the covers, nothing will happen," she said.
Commenting on press reports that the European Commission considers Estonia to be the best location for the LNG terminal's construction and that Finland wants to join the project, Steinbuka said that there is no official confirmation of this. "I read this information in the press but there is no official confirmation from the European Commission about this version since research is underway in terms to where it would be best to build a terminal because the Baltic countries cannot reach an agreement amongst themselves. The research will be completed in the autumn," she said.
"In any case, this issue is open until autumn. It is clear that if there is no agreement for all Baltic countries to take part in this project, there will be no cofinancing from the EU for one country. The situation in complicated," she said.
Latvia, Lithuania and Estonia were unable to reach a final agreement last autumn on the construction of an LNG terminal in Latvia. Therefore, the European Commission has been engaged in independent research in order to identify the most suitable location.
Lithuania plans to build a terminal in the southern section of the Klaipedos Seaport by the end of 2014. This facility's capacity will come to 3 billion cubic meters, which is the Lithuania's annual demand. The terminal's operator, Klaipedos nafta, is engaged in the project's implementation. This company is managed by the Lithuanian state.
Estonia has also not decided against plans to develop its own regional LNG terminal.