Lithuania to build floating gas terminal

Jul 23, 2010
TBT Staff

Kubilius said the construction of the new terminal would help Lithuania achieve energy independence. (photo: prime minister's office)

VILNIUS - The Lithuanian government has approved the construction of a floating gas terminal aimed at helping cut the country's dependence on Russia for its energy needs.

The new liquid gas terminal, which will be built in the Baltic Sea, is expected to help the country maintain it's energy independence.

"Our main task is to create alternative and independent sources of natural gas supplies," Prime Minister Andrius Kubilius told reporters after the decision.

Last month Lithuania saw its gas supplies drop by 30% following a payment dispute between Russia and Belarus, which acts as a transit country for gas headed into Lithuania.

The exact location of the plant, which will have an annual capacity of 3 billion cubic meters -- equal to Lithuania's demand -- has yet to be determined, but a final decision is expected this fall. It is expected to cost about $370 million.

Kubilius stressed the decision to build a liquefied gas plant was also rooted in economics since Lithuania currently pays some $100 more per 1,000 cubic meters of natural gas than other European Union countries.

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