Tallinn LNG Terminal
|This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.|
Tallinn LNG Terminal was a proposed LNG terminal in Estonia. There have been no development updates since 2017 and the project was removed from the European Union's Projects of Common Interest (PCI) list after 2019. The project is presumed to be shelved.
The map below shows the location of the project, in Muuga harbor, Harju County. Tallinn is located about 10km to the west.
- Owner: Vopak EOS, Vopak LNG, Port of Tallinn
- Parent: Vopak, Government of Estonia
- Location: Muuga harbor, Harju County, Estonia
- Coordinates: 59.50601, 25.0045 (exact)
- Capacity: 2.7 mtpa, 0.32 bcfd (first stage: 0.33 mtpa, 0.048 bcfd)
- Status: Shelved
- Type: Import
- Start Year:
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
In October 2015, a European Commission report endorsed construction of a liquefied natural gas (LNG) regasification terminal at Muuga Harbor in Tallinn, Estonia. The terminal would be built by Vopak, an Estonian independent oil & gas company, together with the Port of Tallinn, a state-owned port-operation company. The project would have an initial capacity of 0.33 million tons per year (mtpa) (0.048 billion cubic feet per day (bcfd), with a second stage raising capacity to 2.7 mtpa (0.39 bcfd). Vopak states that it plans to begin construction of the first stage in 2017, but it is unclear whether this is realistic.
A degree of competition exists between this proposal, Lithuania's Klaipeda LNG Terminal, and the Paldiski LNG Terminal for EU endorsement and funding. According to Food and Water Europe's profile on Estonian gas, "These two projects [the Tallinn Terminal and the Paldiski Terminal], have not been accepted in the third [Projects of Common Interest] list but both applied as candidates for the 4th list. The Commission seems to only support one project in the region leaving it up to the Baltic states to decide on which will be their priority project. It is clear that a new LNG terminal such as this would need financial support from the EU. This support would potentially have to be really significant, as conceived by the Paldiski LNG terminal project operator who warned that the infrastructure could only be built if the European Commission was covering 43% (around €150 million) of the €344 million needed. However, an application by the Paldiski LNG project promoter for EU funds under the [Connecting Europe Facility] was denied in 2017. Other developments make plans to add new LNG capacities seem even less reasonable: the Lithuanian LNG terminal which is already able to supply Estonia and Latvia with gas, was planned to be leased until 2024. The Lithuanian government approved the terminals acquisition after 2024 in 2018, which makes it clear that these import capacities would be available beyond 2024 if necessary."
There have been no development updates since 2017 and the project was removed from the European Union's Projects of Common Interest (PCI) list after 2019. The project is presumed to be shelved.
However, the Tallinn LNG website states that, "Currently, the field investigation program is taking place, including thorough studies of the project feasibility, first phase technical design, permitting and negotiations on the Final Investment Decision (FID) terms with the project partners and other involved parties," suggesting the possibility that developments may begin again in the future.
Articles and resources
- EC’s cost-benefit analysis speaks in favour of LNG terminal in Muuga, ERR.ee, 7 Oct. 2015.
- Tallinn LNG website, accessed July 2017.
- Regional LNG terminal should be built at Muuga, The Baltic Course, 1 Feb. 2017.
- Vopak ready to start building LNG terminal at Muuga in 2017, The Baltic Course, 29 Dec. 2016.
- Estonia, Food and Water Europe, accessed December 4, 2019