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International Internet Magazine. Baltic States news & analytics Monday, 01.06.2020, 01:47

Lithuania's Klaipedos Nafta to buy LNG ship

BC, Vilnius, 05.11.2019.Print version
Klaipedos Nafta plans to purchase the Independence floating storage and regasification unit (FSRU) it currently leases from Norway's Hoegh LNG or another vessel by late 2024, the state-run company said on Tuesday.

Klaipedos Nafta's management board made the decision on October 31. It is expected to adopt final decisions on a specific FSRU and the terms of acquisition by the end of 2022. 

The current lease contract with Hoegh LNG expires in late 2024.

The board authorized the company's management "to agree with financial institutions regarding financing for the acquisition of FSRU by the end of April 2020, and to ensure the respective state aid clearance by the end of May 2021", Klaipedos Nafta said in a statement to the Nasdaq Vilnius Stock Exchange. 

It was said earlier that between 121 mln and 160 mln euros would need to be borrowed for that purpose.    

The board also decided to borrow up to 135.5 mln euros from the Nordic Investment Bank (NIB) for a period of 26 years. The loan, backed with a state guarantee, would be used to finance the lease of the vessel, spreading out the cost until 2044. 

It was also decided to propose that the National Energy Regulatory Council reduce the LNG terminal charge for gas consumers by 27 mln euros annually starting next year. 

The board's decisions have yet to be approved by Klaipedos Nafta's shareholders. 

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