Estonia, Latvia to get gas through Parkineeme Port, store it in Incukalns in event of crisis
TALLINN. May 15 (Interfax) - Estonian Climate Minister Kristen Michal and Latvian Climate and Energy Minister Raimonds Cudars signed a memorandum of understanding on Friday under which the countries will set the stage for establishing capacity to receive liquefied natural gas (LNG) in the event of an energy crisis.
The countries will agree on how they will handle possible disruptions in gas supplies, so that if the situation takes a turn for the worse at some point they can quickly start using the Pakrineeme Port to receive gas, Michal said in a press release.
If necessary, they plan to use the already built infrastructure of an LNG terminal at Pakrineeme. It will be used to feed gas into the gas distribution network of the Baltic countries and reserves will be stored in Latvia's underground storage facility.
The countries will agree on joint operations in the event of a crisis and specific terms for supplies and servicing regasification vessels at the LNG terminal, as well as determine the costs related to managing the terminal and above-ground infrastructure. A joint working group will be formed to implement the agreement and work out clearer procedures for cooperation.
The prime ministers of the three Baltic nations have said they will ensure they have sufficient natural gas reserves by next winter.
Lithuania was ready last winter and now it is even more ready, Lithuanian Prime Minister Ingrida Simonyte said at a joint press conference in Tallinn on Friday. After the heating season, gas reserves in storage are far higher than they have ever been in the same period at the European level, while prices have fallen from last August's peak, she said.
She said gas prices have been a big problem recently, with the government having to allocate a great deal of money to support businesses and residents, but it also supported investment in renewable energy and increasing energy efficiency. Therefore, Lithuania is in a far stronger and safer position than it was a few years ago," Simonyte said.
Estonian Prime Minister Kaja Kallas, speaking at the same press conference, mentioned the memorandum with Latvia as a measure to ensure stable gas supplies. Estonia has signed a memorandum on LNG with Latvia, and is jointly using the Incukalns gas storage facility and preparing for a potential emergency, so it is getting ready for next winter, she said.
Latvian Prime Minister Krisjanis Karins said Incukalns still has gas reserves purchased last year.
The difference between the coming season and last season is that now there are already state reserves in Incukalns, he said. In addition, thanks to the drop in energy prices in the world and in Europe, the gas transported to Incukalns from various traders is now cheaper than it was last year, and there is every indication that there will not be any problems with supplies, Karins said.
