Lithuanian oil terminal operator Klaipedos Nafta (KN) has announced its intention to acquire an LNG FSRU by the end of 2024 as part of its plan to secure long-term LNG import to Lithuania.
The company is now looking at options to buy the 2014-built LNG FSRU Independence, currently leased by KN from Norway’s Hoegh LNG, or another FSRU. A final decision will be taken by the end of 2022.
“Estimates show that the LNG terminal will provide economic benefits for Lithuania and gas consumers of the region after 2024. As a reliable alternative for gas import, the LNG terminal will ensure competition in the gas market and contribute to the energy security of the state. In turn, this provides Lithuania with opportunities for regional leadership in the energy sector and for KN to further actively develop the cross-border LNG chain of value,” said Arūnas Molis, the director of KN Klaipėda LNG.
The company plans to reach a deal with financial institutions on securing financing for the acquisition of the FSRU by the end of April 2020. It will also seek approval of state aid by the European Commission by the end of May 2021.
Additionally, the company also intends to borrow EUR135.5m ($150m) from the Nordic Investment Bank (NIB) to finance the charter for FSRU Independence.
“We strive to implement the actions set forth in the Law on LNG as quickly and efficiently as possible. The entire process of achieving the overall goal of securing long-term LNG supply to the country remains extremely complex, so at this point we are keeping all decisions focused within KN and we are focusing on the next, but no less important phase related to the acquisition of the LNG storage unit,” Molis added.