RIGA - Latvia and Estonia plan to sign a memorandum of cooperation on natural gas supplies in crisis situations, said Climate and Energy Minister Raimonds Cudars (New Unity) after the Cabinet of Ministers meeting today.
The memorandum of cooperation will be signed during the meeting of the prime ministers and the energy ministers of both countries.
Cudars said that the memorandum provides that in a situation when natural gas supplies are disrupted in the region due to technical or any other reasons, Latvia and Estonia can use the infrastructure built in Paldiski port to supply natural gas in the Baltic network.
In the coming two weeks both countries will also agree on the specific regulations.
As reported, Estonian Minister of Climate Kristen Michal said earlier that Estonia is planning to jointly use the liquefied natural gas LNG infrastructure in Paldiski and rent an LNG terminal together with Latvia, however, the plan is not intended as a state intervention in the market, but as a measure for preparedness in possible crisis situations enabling to supply both states with energy.
"In the near future, we will start discussing with Latvia how to intervene in case of difficulties in supply and how to bring a floating terminal to Paldiski, should the need for it arise. If the market functions and the situation is stable, the states will not need to rent the vessel and intervene in the market," Michal told BNS.
Michal added that Latvia has indicated an interest in using the LNG capability in Paldiski in case supply difficulties emerge in the region for any reason.
"From our perspective, it is reasonable that we should both be able to use the critical capacity infrastructure, if necessary. Under normal circumstances, a functioning market is enough, but Russia's energy war has shown that we also need to be prepared for other circumstances," he said.