• Natural Gas News

    Lithuania to Buy Its Own FSRU

Summary

Lithuania wants to have its own FSRU instead of leasing one.

by: Joseph Murphy

Posted in:

Natural Gas & LNG News, Europe, Liquified Natural Gas (LNG), Premium, Corporate, Investments, Political, Supply/Demand, Infrastructure, News By Country, Lithuania

Lithuania to Buy Its Own FSRU

The board of Lithuania’s Klaipedos Nafta (KN) have decided to buy a floating storage and regasification unit (FSRU) by the end of 2024 to import LNG, the oil and gas infrastructure operator reported on November 5.

KN currently leases the FSRU Independence from Norway’s Hoegh LNG, stationed at its LNG terminal in the port of Klaipeda, enabling Lithuania to import up to 4bn m3/yr of gas. A final decision will be taken by the end of 2022 on whether to acquire Independence or another FSRU. KN also plans to appeal to the National Energy Regulatory Council, seeking to cut its annual costs at the terminal by an estimated €27mn ($30mn) 

By having its own FSRU, KN said it would be able to provide benefits to gas consumers by ensuring competition, while also bolstering Lithuania’s energy security.

“In turn, this provides Lithuania with opportunities for regional leadership in the energy sector and for KN to further actively develop the cross-border LNG chain of value,” KN Klaipeda LNG’s director, Arunas Molis, explained.

KN said it aimed to agree with banks on financing for the FSRU’s purchase by the end of April 2020 and secure state aid clearance for the loans from the European Commission by the end of May 2021. It also intends to borrow up to €135.5mn from the Nordic Investment Bank to pay the rent on Independence.

The Klaipeda terminal has seen increased usage this year, expanding imports by 40% in January to September. Estonian gas firm also signed up this month to become the fifth company to receive gas from the facility.