The Nordic Investment Bank (NIB) and Lithuanian liquefied natural gas (LNG) and oil terminal operator AB Klaipėdos Nafta (KN) have signed a 25-year loan agreement to finance the purchase of a floating storage regasification unit (FSRU) for LNG operations.
Currently, the FSRU used for LNG import to Lithuania is leased on a ten-year arrangement.
As informed, NIB’s loan will finance the acquisition of ‘the most economically viable’ FSRU at the end of 2024, once the current lease and service agreement expires. Provided financing is up to EUR 160 million (about USD 182 million)
“NIB’s financing will secure a long-term independent natural gas supply to Lithuania and the Baltic markets,” Henrik Normann, NIB President & CEO, commented.
KN expects that gas will remain an important energy resource for Lithuania’s transition to a low-carbon economy by 2050. The decision of acquiring the FSRU is supported by analysts, forecasting stable natural gas consumption in the country in the upcoming decades as well as extended opportunities brought by ongoing regional gas infrastructure projects.
“As the energy market undergoes transformation and search for solutions to reduce environmental impacts, we have an advanced gas supply infrastructure in Klaipeda that can meet current and future needs of gas consumers in the Baltic Sea region and Central Europe,” Darius Šilenskis, KN CEO, said.
In 2019, NIB granted KN a loan of EUR 134.1 million to partly cover the operating lease payments and enable equalized tariff levels to be maintained throughout the full lifetime of the terminal, both before and after a chosen FSRU is acquired. As with the current agreement, the decision to finance LNG terminal was based on its strategic importance for Lithuania. Overall, this is NIB’s fourth loan agreement with KN.
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