Financial support granted under EU state aid rules
The European Commission has approved €448 million in financial support to help realise Lithuania’s planned LNG terminal in the Port of Klaipeda.
The LNG facility, seen as crucial for Lithuania to both diversify and secure its energy supply, is being constructed and operated by Klaipedos Nafto, who will be granted the funding under EU state aid rules.
In a statement, the Commission said that it has concluded that the aid furthers EU energy goals without unduly distorting competition as the development of the LNG terminal will integrate Lithuania into the EU gas market and will stimulate competition on the Lithuanian gas markets.
Earlier this year, Lithuania notified plans to support the construction of the Klaipeda LNG terminal with state guarantees backing up the loans needed to finance the up-front investment costs of the terminal. In addition, the operator will receive the so-called “LNG Supplement”, a fee imposed on all users of the transmission system that will be collected by the Lithuanian transmission system operator and paid out to the operator of the terminal after authorisation of the Lithuanian energy regulator. This will cover part of the investment and maintenance costs during the terminal’s lifetime.
Klaipeda’s LNG terminal, scheduled to be operational by the end of next year, will comprise of a floating storage and regasification vessel, an offshore jetty and a pipeline connecting to the national grid.