Tallinna Sadam and its Estonian compatriot Alexela Invest signed a memorandum of understanding to assess the potential of developing an LNG terminal in Paldiski.
The two companies have agreed to seek best solutions for the development and implementation of LNG terminal and servicing LNG tankers and bunkers as well as establishing port facilities for loading and unloading LNG on the Pakri peninsula by the Lahepere bay in Paldiski.
Tallinna Sadam and Alexela will continue to negotiate the conditions for joint activities with the aim of reaching the contract by the end of 2020, the authority said in a statement.
According to the MOU, the responsibility of Tallinna Sadam in participating in the Paldiski LNG terminal project would be the development and maintenance of the necessary port facilities and Alexela would be responsible for the establishment and operation of the terminal.
Last year, Alexela was denied EU aid for the development of the facility but continued working on the development of the terminal with a storage capacity of 160,000 cubic meters of LNG with a view of expanding it to 320,000-cbm.
In addition, the company plans to add loading facilities for smaller vehicles, trucks and railway wagons.