European Commission Approves Lithuanian LNG Project

On Wednesday the European Commission has found that state aid for the liquefied natural gas terminal project, developed by AB Klaipedos Nafta, is state aid compatible with the internal market. In present value terms, the various public support elements for the LNGT project amount to about EUR 448 million.

The European Commission has concluded that the investment into the LNGT contributes to the security of gas supply and that the aid is necessary and proportionate to realise the investment. Moreover, the LNGT will be open to third parties on non-discriminatory terms, ensuring that there are no undue distortions of competition.

The European Commission has also found that compensation for LNGT maintenance costs is in line with the EU Framework on services of general economic interest.

This approval of the European Commission is one of the main conditions provided for in Resolution No. XII-479 of the Seimas of the Republic of Lithuania “Regarding giving state guarantee to the European Investment Bank”, dated 2 July 2013, in order that the European Investment Bank and the Ministry of Finance of the Republic of Lithuania could sign a state guarantee agreement in the amount of EUR 81,093,605 regarding the loan up to EUR 87 million to be granted by the EIB to the Company, which will be used to finance up to 50 percent of the implementation of the LNGT project.

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LNG World News Staff, November 20, 2013; Image: Port of Klaipeda