Elering commenced a public procurement for acquiring a reserve marine loading arm

Elering commenced a public procurement for acquiring a reserve marine loading arm in order to ensure preparedness for faster future operation of a potential LNG floating terminal in Paldiski.

“The security of supply of gas is absolutely ensured with two operational LNG terminals in the region that meet the needs of the market. Elering is acquiring a reserve loading arm in order to ensure joining the gas network to the floating terminal in Paldiski faster, if required in the future. We have a similar experience with regard to joining the electricity network – we are also acquiring complex pieces of equipment with a long delivery term as spare in order to construct the connection point faster according to the wishes of the persons wishing to join the network. It must be emphasised that the cost of the equipment is always borne by the person wishing to join the network,” said Kalle Kilk, Head of Asset Management and Member of the Management Board of Elering.

The marine loading arm to be acquired will stay in the gas stock reserve of Elering, and the company will be able to provide it to the person intending to join the network for sale at a short period of advance notice, or install it at their request and their own expenses on the quay. While ordering and manufacturing a loading arm in the factory usually takes at least around 40 weeks, the reserve arm to be purchased for servicing a potential future person joining the network reduces the term for making the LNG floating terminal operational by at least 10 times.

Elering will store the loading arm to be brought into Estonia in sections at the Paldiski compression station. If required, it will be possible to assemble the reserve marine loading arm in about a week. Thereafter, installing it on the LNG mooring quay and the necessary configuration work and tests would take another week or two. If a specific person wishing to join the network were to use the piece of equipment for commercial purposes, they would have to pay all the expenses related to the acquisition and installation of the device.

At the moment, Elering does not have any pending joining proceedings in relation to connecting the LNG floating terminal with the Estonian gas network. Proceedings related to two joining applications in the last year have been terminated due to reasons independent of Elering.