Lithuanian LNG terminal to be developed, but problems persist

16 January 2013

The developers of a planned liquefied natural gas (LNG) terminal in Lithuania have won over an sceptical new government, but the problems of this project - designed to reduce the Baltic states' reliance on Russian gas - are far from over

NJ Watson, PRAGUE

On 6 December, the former Lithuanian gas monopoly Lietuvos Dujos submitted a complaint to the European Commission over a law related to the planned LNG terminal being built at Klaipeda port by Klaipedos Nafta, a 71% state-owned firm, Klaipedos Nafta.

The move was no surprise. Ever since the Lithuanian parliament passed the law that sets out the legal and financial basis for the LNG terminal back in June 2012, the region's gas consumers have been unhappy about several of the law's provisions.

At the top of the list of complaints is the stipulation that large gas consumers, such as Lietuvos Dujos, must purchase a minimum of 25% of their supplies from the terminal once it comes into operation in 2014. The costs of construction and operation of the terminal, as well as its infrastructure and connection to the gas transmission system can also be included in...



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