Enefit Power, a subsidiary of state-owned energy company Eesti Energia, has applied to the Environment Agency for an exemption from pollutant emission standards due to the failure of natural gas supply, allowing it to use up to 14,893 tons of shale oil as the main fuel from July. from this year to the end of next year.
The Environment Council asked the Ministry of the Economy and Communications for confirmation of the existence of a real risk of disruption of natural gas supply justifying an exemption.
Timo Tatar, Deputy Secretary General for Energy and Mineral Resources at the Ministry of Economic Affairs, said in his response to the Council that the possibility of gas supply disruptions is real and an exemption would be needed at least until at the end of the coming warming. season.
Tatar said that the Baltic States and Finland together consume more than 60 TWh of natural gas, while the annual capacity of the Lithuanian LNG terminal is around 30 TWh, which means that not all the gas required can be delivered via the terminal.
Estonia and Finland are building additional LNG reception capacity to make up the shortfall, but it is not yet possible to be certain that the terminal will be completed and gas supplies will be operational. Also, it is not yet possible to order supplies for the LNG port while it is under construction.
The latest data shows that not all sellers have enough gas to survive the winter. “As a result, all natural gas consumers should reduce their consumption as much as possible. Heat producers, for example, which can use alternative fuels (such as shale oil) should do so as soon as possible,” said Tatar. .
“In addition, all natural gas consumers will have the opportunity to apply energy efficiency measures to varying degrees. This will ensure that natural gas is supplied throughout the heating season and that the most vulnerable users do not experience interruptions to their supply. The transition to alternative fuels will not happen overnight – sufficient time is needed to ensure both the quantity and availability of fuels.”
In light of this, the Ministry of Economy agrees with Enefit Power’s assessment that the company needs an exemption that allows the switch to shale oil.
The ministry says the exemption should apply at least until the end of the heating season in the coming winter, or until April 30, 2023.
“This will ensure that the inevitable risks related to the security of natural gas supply are not transferred from Enefit Power AS, a provider of critical services, to heat customers.”
Follow ERR News on Facebook and Twitter and never miss an update!