EMEA News
Lithuanian LNG Bunkering Project at Risk of Collapse
Lithuania's Prime Minister Algirdas Butkevicius Friday said talks between LitGas, UAB (LitGas) and Norway's Statoil ASA (Statoil) to finalise a joint venture for small-scale liquefied natural gas (LNG) trade must be completed within two weeks or negotiations between Klaipėdos Nafta and Germany's Bomin Linde LNG GmbH & Co. KG (Bomin Linde LNG) will be at risk of falling apart, local media reports.
As Ship & Bunker has previously reported, Germany's Bomin Linde LNG signed a deal with the Klaipėda LNG terminal operator to develop LNG as a marine fuel in the Baltic Sea, and were also planning a jointly developed LNG bunkering vessel.
Butkevicius says the delay in talks between Litgas and Statoil likewise delay negotiations to solidify the agreement between Klaipėdos Nafta and Bomin Linde LNG on the joint bunkering venture.
"These protracted talks (between Litgas and Statoil) make it difficult for Klaipėdos Nafta to negotiate with the Germans. The Germans waited, but they have now started looking at other ports and terminals," said Butkevicius at a meeting of the government's commission for the LNG terminal project.
"Statoil has to know that it has two weeks to make its decision," he added, noting that while the European Commission (EC) was expected to approve the Litgas-Statoil venture on Tuesday, "practically, we can say that it has already given it."
It is reported that Klaipėdos Nafta would have a 20 percent stake in the venture, while Bomin Linde LNG would own the rest of the shares.
In November, Klaipėdos Nafta signed a Memorandum of Understanding (MOU) with the Spanish Association of Natural Gas for Mobility (GASNAM) to cooperate on the standardisation of LNG bunkering operations.
