Finland and Estonia are planning to rent a floating LNG terminal to ensure supply in the two countries in efforts to reduce energy dependence on neighboring Russia.
More specifically, Finnish Minister of Economic Affairs Mika Lintila and his Estonian counterpart, Taavi Aas, said in a statement that a movable off-shore LNG terminal would offer a quick solution in guaranteeing gas supply in the two European Union members.
Due to the war in Ukraine, we must prepare for possible interruptions of gas imports through pipeline from Russia
Lintila said, adding that a floating LNG terminal “is an efficient way to secure gas supply, including in industry.”
According to the plan, the terminal could be located on either shore of the Gulf of Finland between Finland and Estonia, depending on the gas needs of the countries.
Estonia’s Aas said his country estimates the annual renting cost of the terminal to be around 10 million euros ($11 million) for Estonia “in a best case scenario”.
Usage of gas in Finland is about five times higher than in Estonia. An LNG terminal ship of this size is able to guarantee and secure Finland’s gas demand together with the Baltic Connector gas pipeline
Lintila concluded.
The two Baltic countries follow Germany, which aims to reduce Russian oil imports by half by the middle of 2022, becoming almost independent by the end of 2022.
Germany’s dependence on Russian oil would be reduced in the coming weeks to around 25% through contract conversions.
Most specifically, the first important milestones have been reached to free Germany from the grip of Russian imports, said Robert Habeck, Vice-Chancellor and Minister for Economic Affairs and Climate Protection, adding that contract conversions were being done at an “insane pace.”
As far as coal is concerned, Germany could become independent of Russia by the fall, according to BMWK, while from April, the country’s dependence on Russian coal could be reduced from 50% to 25% in the short term.
