Energy, Gas, Legislation, Lithuania

Since 2013, Achema has a debt of EUR 16 million for the LNG terminal's operation, including the additional security supplement. Even though Achema does not buy gas from the terminal, yet taxes needed to maintain the LNG terminal are calculated taking into consideration the amount of consumed gas regardless of whom it was bought from. Achema consumes for its own purpose nearly half of the natural gas consumed in Lithuania. Therefore it is obligated to pay half of the LNG terminal's operating costs as well.

According to Budrius, if the enterprise had to cover half of the terminal's maintenance expenses, financial threat would emerge not only to Achema but to the regions of Jonava and Kaunas. The lawyer says the terminal is needed to ensure energy security of household consumers of heat, electricity and gas.

"Achema acquires raw natural gas to produce fertilisers and our activities in substance are unrelated to energy security," says Budrius. "Ultimately, Achema has not received a single cubic metre of gas from the terminal but is being forced to pay".

According to the lawyer, Achema's products are competitive in the global market and the company pays approximately EUR 40 million in taxes each year. Thus the state is acting irresponsibly by attempting to severely increase tax burden.

Achema has appealed against the procedures of LNG terminal's sustenance. The Constitutional Court is considering the legality and justification of the LNG tax called the additional security component, which was established by the National Commission for Energy Control and Prices (VKEKK).