The European Investment Bank (EIB) has announced that it is to lend €87 million to Klaipedos Nafta for the construction and operation of a new liquefied natural gas (LNG) import facility located in the port of Klaipeda.
The LNG terminal comprises a floating storage and regasification vessel (leased by Klaipedos Nafta), an offshore jetty including gas handling facilities and an 18 km pipeline connection to the Lithuanian gas grid. The project is expected to be finalised by the end of 2014.
This investment will help Lithuania to diversify and secure its energy supply, and provide provide backup in the event of gas supply failures.
“The EIB strongly promotes security and diversification of energy supply. We therefore particularly welcome this agreement with Klaipedos Nafta, as the project will ensure the sustained supply of a key source of energy and will increase competition in Lithuania, ” said EIB Vice-President Pim van Ballekom.
Lithuanian Minister of Energy Jaroslav Neverovic added: “The LNG terminal in Klaipeda is a critical component of Lithuania’s energy strategy as it is the alternative solution for gas diversification in the short-term. This EIB loan is vitally important for timely construction of the necessary infrastructure already by the end of next year. It will bring transparent competition to the gas market, with national and possibly regional consumers set to benefit.”
Rokas Masiulis, CEO of Klaipedos Nafta, commented: “We are delighted that Klaipedos Nafta concluded this loan agreement with the EIB today. This long-term loan will be the backbone of the LNG terminal’s project financing and will ensure that the project will be completed in a timely fashion. This is very important as the LNG terminal will bring competition to the Lithuanian gas market for the first time ever.”
Adapted from press release by Callum O’Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09072013/eib_aids_construction_of_lithuanian_lng_plant_219/