KN secures funds for FSRU purchase

Lithuanian LNG terminal operator, Klaipedos Nafta (KN) has signed a 25-year loan agreement with the Nordic Investment Bank (NIB) to finance the purchase of an FSRU for LNG operations. 

Currently, the FSRU used for LNG import to Lithuania is leased on a ten-year arrangement, KN said in its statement. NIB’s loan of €160 million ($182.2 million) will finance the acquisition of the most economically viable FSRU at the end of 2024, once the current lease and service agreement expires.

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, the company said.

At the end of 2019, NIB granted KN a loan of €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.

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