Estonia and Finland to jointly lease LNG floating terminal as step to stop importing Russian gas

TALLINN. May 4 (Interfax) - Estonian energy company Elering and Gasgrid Finland signed an agreement on Wednesday to jointly lease and operate a liquefied natural gas (LNG) floating terminal as part of steps to stop importing gas from Russia.

"Our joint activities, including negotiations with the owner of the vessel, are going according to plan in order to guarantee the vessel's arrival in our region by the end of the year," Elering CEO Taavi Veskimagi told reporters.

The sides have agreed to develop all necessary infrastructure to put the LNG floating terminal into operation and to share its leasing costs, Veskimagi said. The idea is to split the costs of leasing the vessel in the same proportion as the levels of gas consumption in Estonia in Finland, i.e., Elering will cover 20% of the costs and its Finnish partner 80%.

Negotiations are ongoing in Estonia with local companies Alexela and Infortar on building a site where the vessel will dock as well as receiving facilities in Paldiski, she said.

The floating terminal is scheduled to reach the Paldiski port in Estonia at the end of 2022 and will remain there until all necessary infrastructure in Finland is ready.