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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 21:53

Lithuanian cabinet to decide on guarantee to back NIB loan to Klaipedos Nafta

BC, Vilnius, 20.11.2019.Print version
The Lithuanian Cabinet is to consider on Wednesday issuing a state guarantee on the Nordic Investment Bank's 135.5-million-euro loan to Klaipedos Nafta that will help spread the costs of operating the Klaipeda liquefied natural gas (LNG) terminal over a longer period of time, informed LETA/BNS.

The state-controlled energy terminals operator plans to borrow up to 135.5 miln from the NIB to finance the costs of operating the Independence floating storage and regasification unit (FSRU), spreading out these costs until 2044.


Energy Minister Zygimantas Vaiciunas expects all the decisions that are necessary for reducing the LNG terminal-related levy for the natural gas transmission system's users on January 1, 2020 to be adopted by the end of the year. 


"I've no doubt that once the Seimas approves the state guarantee, these agreements will be signed before the New Year," said Vaiciunas, when asked when an agreement with the NIB could be signed. 


The so-called "LNG security supplement" would be reduced by 27 mln euros annually until 2024, when the current FSRU lease contract with Norway's Hoegh LNG expires. Such state aid has already been cleared by the European Commission. 


There is no publicly available information as to how much the levy would be cut in the next 20 years.


Klaipedos Nafta's board has also authorized the company's management seek an agreement with banks on the financing for the acquisition of the FSRU by late April 2020, and to secure the respective state aid clearance.


It was said earlier that another 120 mln to 160 mln euros would need to be borrowed for this purpose. 






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