Abstract

This paper considers in the context of regional gas infrastructure development the issue of energy security of foreign Eastern Baltic countries, which depend heavily on a single energy supplier – Russia. In recent years, the countries of the region have announced several projects for constructing LNG terminals. The European Union, which the countries in questions are members of, will provide political and financial support to only one of these projects. The paper explores the role of gas in the economy and energy of foreign countries in the Eastern Baltic; it is concluded that the countries most dependent on Russian gas are Lithuania and Latvia. The announced LNG terminal projects are being reviewed in detail, their necessity is estimated from the perspective of current and future demand for natural gas, including the terms and conditions of contracts concluded with OAO Gazprom. Different scenarios and prospects for individual LNG terminal projects and associated pipeline infrastructure are evaluated. It is shown that the inability of countries to find a political compromise on this issue and the terms of existing contracts for Russian gas, as well as low domestic demand for gas hamper the implementation of a regional LNG terminal project even in the long term.

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