Ramboll: Tallinn the cheapest option for a LNG terminal06.09.2012, 11:04
Danish consulting company Ramboll Oil & Gas A/S has finalised a preliminary feasibility study of the Tallinn LNG terminal project, developed at the port of Muuga, reports Elering, one of the companies involved in developing the project.
According to the study, the total investment required to construct the Tallinn terminal would be approximately one third less than the cost of creating a similar terminal in any other location.
The purpose of the planned terminal is to ensure the security of supply in the Baltic countries and Finland, which are currently dependent on a single gas supplier, as well as to satisfy commercial demand. The study was commissioned by the developers of the terminal project: Elering, Port of Tallinn, and Vopak LNG.
The developers have chosen the east side of the port of Muuga as the location of the LNG terminal, enabling it to use the existing port infrastructure. According to the study, the cost of constructing the described terminal is 221 million euros, plus an investment of up to 10 million euros to connect the terminal to Estonian gas transmission network. The implementation of the terminal project is estimated to take four years, including two years of construction work.
By a conservative estimate, a third of the financing of the terminal’s construction will need to be provided by investment grants from the European Union, in order to ensure the project’s financial stability and avoid placing an excessive burden on gas consumers. The Tallinn LNG project is a candidate for the EU Project of Common Interest (PCI), as it matches the approved assessment criteria for receiving EU aid.
The design of the Tallinn LNG terminal includes a storage facility capable of holding 90 000 cubic meters of LNG, and the ability to receive ships of up to 75 000 cubic meter capacity. The terminal will be capable of releasing nine million cubic meters of natural gas per day, and will also include facilities for ship bunkering and truckloading. The terminal’s capacity can be significantly increased at the selected location if additional demand arises.
Ramboll’s recommendation to the Elering, Vopak and Port of Tallinn workgroup is to initiate a full scale feasibility study, market study and financing negotiations within the next year, and to begin signing preliminary agreements with the potential suppliers of security of supply. The process of environmental impact assessment and planning should also be initiated.