2012-06-12 14:55

Lithuanian parliament approves LNG terminal construction

On Tuesday, the Lithuanian parliament adopted a law allowing to start the construction of a liquefied natural gas (LNG) terminal in Klaipėda and putting into place the requirement that at least 25 percent of the country's natural gas needs be purchased via the facility.
Suskystintų gamtinių dujų terminalas turėtų atsirasti prie Kiaulės nugaros - salos uosto akvatorijoje.
The terminal in Klaipėda is planned to be launched in late 2014. / Aurelijos Kripaitės/15min.lt nuotr.

The Seimas passed the bill by a vote of 108 to one, with nine abstentions.

Lithuania expects to build the terminal in Klaipėda by the end of 2014 to have an alternative to Gazprom's gas supplies and bring down prices for natural gas, which is widely used for heating purposes in the country.

The legislation provides for at least 25 percent of the country's natural gas needs to be purchased via the terminal. This requirement will be binding on companies holding natural gas suppliers' licenses, including Lietuvos Dujos(Lithuanian Gas), Dujotekana, Achema, Intergas, Kauno Termofikacijos Elektrinė (Kaunas Combined Heat and Power Plant) and Lietuvos Energija (Lithuanian Energy).

The 25 percent rule will apply not only to gas purchases from the terminal, but also to gas purchases from Gazprom, which supplies it by pipeline.

The Seimas rejected proposals from some lawmakers to scrap the 25 percent requirement.

Klaipėdos Nafta (Klaipėda Oil), a state-run company that is implementing the LNG project, plans to launch a tender for the supply of gas to the terminal, expecting to sign a gas supply contract in the second half of the year. The terminal is planned to be launched in late 2014.

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