Lithuania: Klaipedos Nafta Insures LNG Terminal Construction Risks

Klaipėdos Nafta of Lithuania said it has entered into an insurance agreement with PZU Lietuva for insurance of the company’s risk, related to construction works of the LNG infrastructure.

The main terms and conditions of the agreement are as follows:

1.       Insured Items – jetty infrastructure and facilities, detailed in the Contract for Engineering, Procurement and Construction of LNGT Infrastructure (EPC) Works, concluded by the Company and BMGS AS on 18 March 2013 (hereinafter, the Jetty EPC Contract) and the pipeline and gas metering station, detailed in the Contract for Engineering, Procurement and Construction of the Pipeline and Gas Metering Station (EPC) Works concluded by the Company and PPS Pipeline Systems GmbH on 6 May 2013 (hereinafter, the Pipeline EPC Contract);

2.       Insured Works – construction, erection, testing works designated to create the Insured Items, performed in accordance with the Jetty and Pipeline EPC Contracts;

3.       Insured Business – natural gas and/or LNG related business;

4.       Scope of the insurance:

4.1      material damage to the Insured Works insurance: sum insured – LTL 223,249,632 (EUR 64,657,563);

4.2      third party liability that occurred while executing the Insured Works insurance: sum insured – LTL 34,528,000 (EUR 10,000,000);

4.3      advance loss of profits sustained with respect to the Insured Business due to damage covered under the Material Damage Insurance insurance: sum insured – confidential information.

5.     Insurance Period – from 2 September 2013 till 5 April 2015;

6.     Insurance Premium – LTL 6,252,447 which shall be paid by instalments, i.e. 6 payments to be made quarterly; the first payment of insurance premium to be made on 1 November 2013.

[mappress]

LNG World News Staff, September 4, 2013; Image: Port of Klaipeda