Abstract

Liquefaction of natural gas provides great opportunities for its trade and transportation, making it cost-effective and accessible to places where installing pipelines is impossible or economically unjustified. Liquefied natural gas also opens opportunities for market diversification, if the region is tied to one supplier, as it is in Latvia, with potential positive effects on both the market price and the region's energy security. In view of the growing LNG trade and transport industry, the article studies the possibility to import natural gas in liquefied form. Neither Latvia or Estonia has largescale facilities to import natural gas in liquefied form. The only natural gas sources are natural gas imported from Russia through piping. Latvia and Estonia can import and store liquefied petroleum gas (LPG), which is the drained by-product of natural gas extraction and liquefaction process, ethane and butane. Lithuania has the only LNG import terminal in the Baltic countries. The aim of the study is to understand the feasibility and validity of constructing a LNG terminal in Latvian territory based on the Lithuanian experience

Highlights

  • World energy policy has experienced many strokes resulting in energy market changes, and liquefied natural gas gains a more substantial role in these markets

  • Basing on Lithuanian example and assessing the optimistic and pessimistic projections, it is possible to forecast how the gas market in Latvia could change after the LNG terminal is implemented

  • LNG terminal in Skulte would be located in a coastal zone approx. 2,5 km north-west from Skulte port, it would have a minimal impact on the port, existing industrial objects and local inhabitants

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Summary

Introduction

World energy policy has experienced many strokes resulting in energy market changes, and liquefied natural gas (hereinafter – LNG) gains a more substantial role in these markets. One of the main tasks in this study is to analyse the possibilities for building a LNG terminal by assessing the factors like location, potential connection to gas storage facilities, terminal type, capital costs, maintenance costs, capacity, etc. Assessment of possibilities and validity for building a LNG terminal will be advanced as the key problem by evaluating the existing market situation and terminal in Klaipeda port. To reach the goal of this study, the following tasks have been set: to assess technical possibilities and technologies for LNG transportation; to analyse current situation in LNG trade and transport market; to study and compare natural gas infrastructure and potential storage facilities in Latvia; to analyse natural gas consumption trends in the Baltic States; to assess potential and define the most eligible location for LNG import terminal in Latvia; to analyse costs of the terminal and imported LNG. LNG terminal development facilitie in Latvia basing on the experience of other states

General Requirements
Guarantee deposit at FSRU
Freeport of Riga
Skulte port
Findings
Conclusions

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