Alexela and Infortar call off talks with Elering on Paldiski LNG terminal

Published date06 May 2022
Publication titleLETA

TALLINN, May 6 (LETA--BNS) - Private companies Alexela and Infortar, the duo behind the LNG terminal project in the area of the northwestern Estonian port town of Paldiski, consider that the offer of the state-owned system operator Elering for the construction of the LNG berth is not acceptable and consider the negotiations to have ended due to the lack of will on the part of Elering.

To ensure security of supply, Alexela and Infortar will continue talks with the Ministry of Economic Affairs and Communications, the companies said in a press release on Friday.

Marti Haal, chairman of the management board of Alexela Group, said that two months of talks have shown that Elering has no desire to have a terminal set up in Estonia, either by this autumn or ever at all.

"The debate has been over whether we should accept a loss of 15 million or 30 million [euros] on an investment of nearly 40 million. At the same time, Elering's plan of nearly one hundred million euros essentially envisages the purchase of a vessel for the Finns with Estonian taxpayers' money. And the fact that the ten-year lease is more than two times the original construction price of the vessel and the owner of the vessel earns an exceptionally high profit is not an obstacle there," Haal said.

ccording to Haal, the plan tabled by the private companies is significantly more beneficial for Estonian taxpayers both in the short, and especially the long term. According to him, the goal of Alexela and Infortar is to create security of supply for Estonia already in the coming winter, not only in the amount of one-fifth of gas consumption, but also for all industrial consumers, and also to give our economy a competitive advantage in the region.

"Considering the lessons learned by Estonia to date in relying on its neighbors in crises, it would be critically high time to put the interests of the Estonian economy first. While we do have good energy connections, we could also have some regional success project in energy that would help us to the table also in foreign policy in the future. The builders have been selected, materials have been purchased -- some procedural activities still, and we could start the construction of the unloading berth in the coming few days," Haal said.

Martti Talgre, CEO of Infortar, noted that for a project so complex and with an almost non-existent timeframe, what matters is real will and a good spirit of cooperation, and that there should be no other factors in this equation.

"The...

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