Klaipedos Nafto to receive €87 million loan to build and operate Lithuanian LNG facility
The proposed LNG import terminal at Klaipeda Port, Lithuania, has received a major boost with the news that the European Investment Bank (EIB) has agreed to lend energy company Klaipedos Nafto €87 million to help execute the project.
The LNG facility, to be constructed and operated by Klaipedos Nafto, is seen as crucial for Lithuania to both diversify and secure its energy supply, while ensuring that sufficient back up is in place in the event to gas supply shortages, the European Commission said in a statement.
“The LNG Terminal in Klaipeda is a critical component of Lithuania's energy strategy as it is the alternative solution for gas diversification in the short term,” said Lithuanian Minister for Energy, Jaroslav Neverovic.
“This EIB loan is vitally important for timely construction of the necessary infrastructure already by the end of next year. It will bring transparent competition to the gas market, with national and possibly regional consumers set to benefit.”
The proposed terminal will comprise of a floating storage and regasification vessel, to be leased by Klaipedos Nafta, an offshore jetty and a pipeline connecting to the country’s national grid, which will be funded by the EIB loan.
The terminal is expected to be operational by the end of next year.