Ramboll Oil & Gas A/S to Conduct Feasibility Study of Muuga LNG Terminal

The call for tender for the preliminary feasibility study of the Muuga liquefied natural gas (LNG) terminal, announced by Elering in December of 2011, has been won by the Denmark-based international consultancy firm Ramboll Oil & Gas A/S.

The tender procedure was conducted in two stages. In the first stage, four out of six bidders qualified. The main condition for qualification was the bidder’s prior experience in the natural gas sector and LNG terminals. The bid assessment criteria were the price, speed of completion, and the thoroughness of the methodology. As per the bid of Ramboll Oil & Gas, the study will be completed in 17 weeks at a cost of 75 000 euros.

In the preliminary feasibility study, the consultant will provide recommendations regarding the size of the terminal as well as other technical parameters, such as the regasification capacity, pier length, network connection conditions, etc. These recommendations must be made on the understanding that the terminal will be constructed in stages: first as a small-volume facility providing a security reserve of gas and covering the needs of ship bunkering, and later developed into a regional terminal that meets the demands of the entire Baltic-Finnish area.

The study will define the project schedule and produce a preliminary profitability analysis. The terminal’s cost and operating expenditure will be determined, along with the requirements for financing from the EU support funds should the project turn out to be unprofitable in a purely commercial form.

The consultant will base the study on the principles of energy security and a competitive market in both the local and regional sense, with consideration given to the goals of Europe’s single energy market, including the Baltic Energy Market Interconnection Plan (BEMIP).

Ramboll’s previous experience covers engineering and consultancy work across the entire natural gas value chain, from points of extraction to the end consumer’s gas usage. Additional information and examples of completed projects can be found at www.ramboll-oilgas.com.

The Port of Tallinn and Elering signed a cooperation agreement on December 5th, 2011, to jointly begin preparations for the construction of an LNG terminal at the port of Muuga. The contract signed by the parties establishes the goal of initiating planning processes, conducting environmental assessments and creating the feasibility and profitability assessments of a regional LNG terminal.