Lithuanian LNG terminal operator, Klaipedos Nafta said that the Arbitration Institute of Stockholm has resolved a dispute over construction of the LNG import terminal in the port of Klaipeda.
The arbitration court has rejected a claim by the Latvian company AS BMGS against Klaipedos Nafta, amounting to over €2.3 million ($2.7 million) for additional contracting works.
BMGS carried out the construction works of a jetty of the LNG terminal, claiming that it incurred €2.3 million in additional costs for works which were necessitated by unforeseen geological conditions of the soil. As a result, the Latvian company asked KN to cover the cost of additional works, despite the fact that BMGS agreed to carry out the whole project for a fixed price of €27.19 million. BMGS was awarded the contract of KN after bidding the lowest price in the public procurement procedure.
At the arbitration hearing, KN denied the claim insisting that BMGS took the risk of the occurrence of additional costs.
The arbitration court rejected the claim of BMGS and ordered it to pay over €200,000 in court fees.