Estonian court dismisses Pakrineeme Sadam's €2.77 million claim against Elering
Harju County Court has dismissed port operator Pakrineeme Sadam's €2.77 million claim against grid operator Elering, along with an alternative €100 million damages claim, ruling no lease agreement ever existed between the parties.
Estonia's Harju County Court on Friday, September 11, dismissed a lawsuit filed by port company Pakrineeme Sadam (PNS) against Elering, the operator of Estonia's electricity and gas transmission systems. PNS had sought €2.77 million plus penalty interest, and alternatively claimed €100 million in damages — both claims were rejected.
The court found that no lease agreement, nor any other paid usage contract, was ever concluded between PNS and Elering in 2022. Email correspondence and discussions between the parties showed only negotiations over several possible arrangements, with Elering favoring outright purchase of the berth over rental. A lease was just one of three options considered, and the parties never reached agreement on essential terms.
The court noted that handing over the construction site to Elering for installing gas infrastructure did not constitute a lease relationship, and invoices issued by PNS were not based on any valid contract. A March 2023 sale agreement between PNS and Estonia's reserve agency EVK confirmed the property was not encumbered by any lease, and EVK confirmed no lease had been transferred to it.
The court also found no grounds for damages, since Elering had no obligation to purchase the liquefied natural gas regasification equipment, buy a loading arm, or obtain operating permits by any specific date. The October 2022 government-level decision to direct the floating storage and regasification unit (FSRU) to Finland was a political decision, and no contractual relationship existed between PNS (or its subsidiary Balti Gaas) and Elering whose breach could justify a €100 million lost-profit claim.
The court dismissed claims of unjust enrichment as well, noting Elering installed the gas infrastructure on the berth with PNS's consent. The berth, located in a public waterbody, belongs to the state under a construction permit.
Since spring 2022, following Russia's aggression against Ukraine, PNS and Elering had cooperated on building LNG reception capacity — PNS constructed a berth in Paldiski while Elering built gas infrastructure. In October 2022, Estonia and Finland decided to place the FSRU in Inkoo. In March 2023, Estonia's reserve agency purchased the Pakrineeme property and LNG berth infrastructure costs from PNS. The loading arm was installed in early 2024, with operating permits obtained in 2023-2024.
The ruling has not entered into force and can be appealed to Tallinn Circuit Court within 30 days. Pakrineeme Sadam is owned by Alexela and Nordic Stream Group, with Enn Pant and Heiti Hääl listed as ultimate beneficiaries.
