LNGT state aid OK

  • 2013-11-27
  • From wire report

VILNIUS - On Nov. 20, the European Commission found that state aid for the liquefied natural gas terminal (LNGT) project, developed by Klaipedos Nafta (the Company), is state aid compatible with the internal market, reports ELTA. In present value terms, the various public support elements for the LNGT project (including state guarantees and the LNGT supplement) amount to about 448 million euros.

The European Commission has concluded that the investment into the LNGT contributes to the gas supply’s security and that the aid is necessary and proportionate to realize the investment. Moreover, the LNGT will be open to third parties on non-discriminatory terms, ensuring that there are no undue distortions of competition.
The European Commission has also found that compensation for LNGT maintenance costs is in line with the EU Framework on services of general economic interest.

This approval of the European Commission is one of the main conditions provided for in Resolution No. XII-479 of the Seimas. Regarding giving a state guarantee to the European Investment Bank, dated July 2, 2013: this is in order that the European Investment Bank and the Ministry of Finance of Lithuania (acting in the name of the state) could sign a state guarantee agreement in the amount of 81.0 million euros, regarding a loan of up to 87 million euros to be granted by the EIB to the Company, which will be used to finance up to 50 percent of the implementation of the LNGT project.