RIGA - Itera Latvija gas company has announced plans to build a liquefied gas terminal in a Latvian port.
Itera Latvija CEO Juris Savickis told the Baltic News Service that the company was reviewing three likely locations for the terminal 's the ports in Riga and Liepaja, as well as a third location he declined to specify.
"Right now Liepaja seems the most attractive option, as the local government is more interested in investments and willing to cooperate. There are no bureaucratic political obstacles there," Savickas said.
He explained that the company has been considering the project since learning that natural gas consumption in Latvia and neighboring countries is set to increase.
The terminal, which would only receive gas, could handle shipments from Russia and Norway, and the project would help to lessen the load on the gas pipeline supplying gas from Russia to the underground gas reservoir in Incukalns, from where Latvijas Gaze (Latvian Gas) delivers gas.
According to plans, gas received at the Itera Latvija terminal will be processed and then distributed further along Latvian Gas' system.
Though modern technology allows for the transformation of liquefied gas into natural gas, delivering liquid gas by ship is expensive.
The terminal has a planned capacity of 500 million cubic meters of gas per year, and investments are estimated to reach $500 million. "Itera won't be able to pull it off alone, not in terms of money, but rather as regards to logistics. Therefore, we are holding talks with potential partners," Savickis said.
The CEO added that more detailed information about the project would be available in approximately six months, as company experts are still working on a business plan.
Itera Latvija holds 16 percent in Latvian Gas, Germany's Ruhrgas 48 percent and Russia's Gazprom 34 percent. Itera Latvija belongs to Russia's Itera concern, the supply arm of Gazprom.
