LNG agreement signed

KLAIPEDA - The state-owned Klaipeda State Seaport Authority and another state company Klaipedos Nafta (Klaipeda Oil) have signed an additional investment agreement on the construction of the liquefied natural gas (LNG) terminal, reports ELTA. According to a Klaipedos Nafta press release, the investment by the Seaport Authority, related to the preparation of the LNG terminal activity (dredging, radiolocational equipment, preparation of port systems) will account for 106.4 million litas (30.8 million euros).

Klaipedos Nafta will invest into the port’s infrastructure (a jetty), which later will be reimbursed by the Seaport Authority. The company’s investment into the port’s superstructure (equipment for LNG storage facility and systems) will account for 54.8 million litas.

Precise amounts of investments shall be determined following conclusion of contracts on provision of work under the procedure set by the Law on Public Procurement, reports dredgingtoday.com.
Investments by the Seaport Authority into the infrastructure of the port will be compensated from two sources, i.e. charges paid by the LNG terminal operator, and third persons which use the port.

The fee will be calculated based on the amount of investment by the Authority into the infrastructure, provided that the period of return of investment is set at 20 years and the internal rate of return is set at 5 percent.
Norwegian company Hoegh LNG won a public tender and is going to build a floating LNG storage tank containing gasification facility for Lithuania. The terminal is expected to be fully outfitted and brought into operation by the end of 2014.