EMEA News
European Investment Bank Financing Klaipeda LNG Terminal
The European Investment Bank (EIB) says it is providing an €87 million ($111.6 million) loan to oil importer and exporter Klaipedos Nafta for a new liquefied natural gas (LNG) import facility at the Lithuanian Port of Klaipeda.
The terminal will include a floating storage and regassification vessel, an offshore jetty with gas handling facilities, and a pipeline connection to the national gas grid.
The plan for the project, which is designed to help provide Lithuania with a more secure and diverse energy supply, is expected to be finalised by the end of next year.
"The EIB strongly promotes security and diversification of energy supply," said Pim van Ballekom, the bank's vice president.
"We therefore particularly welcome this agreement with Klaipedos Nafta, as the project will ensure the sustained supply of a key source of energy and will increase competition in Lithuania."
Rokas Masiulis, CEO of Klaipedos Nafta, called the loan the "backbone" of financing for the project.
"This is very important as the LNG terminal will bring competition to the Lithuanian gas market for the first time ever," he said.
The EIB is the lending arm of the European Union (EU).
Klaipedos Nafta, which is focused primarily on the shipment of crude oil and oil products, is majority-owned by the Lithuanian Ministry of Energy and created a new gas distribution arm, LitGas, in December 2012, according to Reuters.
The European Bank for Reconstruciton and Development (EBRD) announced in January that it would provide €32.5 million ($43.3 million) for the redevelopment of the Port of Kalipeda to allow for more direct shipments to the Baltic region.
