Bloomberg News

Klaipedos Nafta, Hoegh Sign LNG Storage Facility Lease Agreement

March 02, 2012

AB Klaipedos Nafta (KNF1L), which operates Lithuania’s oil terminal on the Baltic Sea, signed an agreement with Norway’s Hoegh LNG to lease a vessel for the country’s planned floating liquefied-natural-gas terminal.

Hoegh will provide a floating storage regasification unit, maintenance and a vessel crew, the Klaipeda-based company said today in an e-mailed statement. Operations are planned to start at the end of 2014, it said.

The Baltic nation is working to diversify its imports from Russia’s OAO Gazprom, its sole supplier. The country imports all of its gas from Russia. It will lease the vessel from Hoegh for 10 years and then will have the right to buy the regasification unit, according to the statement. Klaipedos Nafta is 70.63 percent owned by the state.

“The floating storage regasification unit will help Lithuania reduce its dependency on a single gas supplier and will grant access to international gas markets,” said Klaipeda Chief Executive Office Rokas Masiulis in the statement.

The facility will store as much as 170,000 cubic meters of liquified natural gas, the company said. The 10-year lease of the vessel will cost $689 million, the Baltic News Service reported today.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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