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Lithuanian court dismisses Achema appeal regarding LNG Terminal

BC, Vilnius, 29.05.2015.Print version
Vilnius Regional Administrative Court (VAAT) has dismissed the appeal of fertiliser manufacturer UAB Achema against the National Commission for Energy Control and Prices (VKEKK) in relation to its provisions on the construction and exploitation of the Liquefied Natural Gas (LNG) Terminal, informs LETA/ELTA.

UAB Achema had asked to annul the VKEKK's decisions dated 19 October 2012 by which the VKEKK decided to compensate and cover in 2013 the LNG Terminal's expenditure amounting to LTL 114.1 million (EUR 33 million) and therefore established a price component to be paid as an additional inseparable element for natural gas transmission.

 

The court pronounced that the VKEKK's decisions were legal and justified and thus dismissed the appeal as groundless. The court ruled that the state implemented the LNG Terminal project seeking for strategic energy policy goals to safeguard the public interest and the interest of natural gas consumers. Therefore, the construction and exploitation of the terminal has to be regarded as provision of services that meet the interests of the public.

 

The court ruled that the VKEKK's decision to take into consideration construction and exploitation costs when establishing gas price was justified and legal. Moreover, it was pronounced that the VKEKK had the capacity to include an additional price component for gas transmission services. The judicial panel dismissed the notion that the VKEKK's actions violated the Constitution or the law of the European Union.

 

The judgment of the VAAT may be appealed within 14 days to the Supreme Administrative Court of Lithuania.






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