Estonia Positioned to Become a Liquefied Natural Gas Hub

Estonia's planned liquefied natural gas terminal in the Baltic Sea port of Muuga would cost as much as 30 percent less than similar projects in the region, according to Sept. 6 press reports citing a feasibility study from Estonia's state electricity provider. The terminal is expected to cost approximately 221 million euros ($282 million), significantly less than previous estimates, although the study also noted that the project would still need the European Union to provide roughly one third of the funding.

The project reflects a broader trend of energy diversification within the Baltics, where Russia's energy leverage could be waning. Baltic states have been looking to imported liquefied natural gas, or LNG, to reduce their dependency on Russian natural gas. For political, infrastructural and geographical reasons, Estonia has emerged as a potential Finnish-Baltic natural gas hub, furthering the region's energy goals.