Court rejects Pakrineeme port’s 2.77 million euro claim against Elering

Harju County Court has rejected Pakrineeme Sadama’s claim against Elering for 2.77 million euros plus default interest, ERR reported.

The court also rejected the company’s alternative claim for 100 million euros in damages.

The court found that Pakrineeme Sadama and Elering had not concluded a lease or another paid-use agreement in 2022. Their email correspondence and discussions showed only negotiations over several alternatives, with Elering preferring to acquire the quay. Leasing was one of three options, but the parties did not agree on key terms.

“Handing over the work area to Elering for the installation of gas infrastructure did not constitute a lease. The invoices submitted by Pakrineeme Sadama were not based on a valid contract,” the court said.

The court also noted that a sale agreement signed between Pakrineeme Sadama and EVK in March 2023 confirmed that the property was not encumbered by lease or rental agreements. EVK confirmed that no lease had been transferred to it.

The court said there was no basis for a claim for damages because Elering was not required to acquire the unit needed for LNG regasification, purchase a loading arm or obtain operating permits by a specific date.

The decision by Estonia and Finland in October 2022 to send the floating storage and regasification unit to Finland was a political decision made at government level, the court said. There was no contractual relationship between Elering and either Pakrineeme Sadama or its subsidiary Balti Gaas that could support a claim for 100 million euros in lost income.

“There was no unjust enrichment. Elering installed the gas infrastructure at the quay with Pakrineeme Sadama’s consent, so this was not unauthorised use,” the court said.

The court added that the mooring quay in a public body of water belongs to the state under a building permit. A fee for tolerating technical installations was not relevant because no compulsory use right had been established. In any event, such a fee could not have amounted to 500,000 euros per month, the court said.

Pakrineeme Sadama and Elering began working together in spring 2022 to create LNG receiving capacity following Russia’s aggression against Ukraine. Pakrineeme Sadama built a mooring quay in Paldiski, while Elering constructed the gas infrastructure.

In October 2022, Estonia and Finland decided that the floating unit would be located in Inkoo, Finland. In March 2023, EVK acquired the Pakrineeme property and LNG quay infrastructure from Pakrineeme Sadama, covering the costs to the agreed extent. The loading arm was installed in early 2024, and operating permits were obtained in 2023 and 2024.

The ruling has not yet entered into force. An appeal may be filed with the Tallinn Court of Appeal within 30 days.

Pakrineeme Sadama is owned by Alexela and Nordic Stream Group. According to the commercial register, its ultimate beneficial owners are Enn Pant and Heiti Hääle.