Acquisition of Lithuanian LNG Storage Vessel After 2024 Approved

Höegh LNG owned LNG storage vessel FSRU Independence moored in Port of Klaipeda, Lithuania (image Höegh LNG).

The Governmental Commission on the Economic Infrastructure Development has offered to assure possibilities of long-term import of LNG in Lithuania by adopting current decisions regarding the acquisition of an LNG storage vessel in 2024. The commission believes that this is the most economic and strategically sustainable choice for Lithuania. It will ensure competitive gas prices and the lowest LNG infrastructure maintenance cost in the short and the long run.

The decision regarding the acquisition of the LNG terminal has been adopted with regard to the technical and economic alternative analysis and recommendations of international independent consultants.

“Today, we have not assessed the circumstances of the acquisition of the LNG storage vessel and the relevance of its size and price. These decisions were made much earlier, and we have no possibility to change them. Today it is important to maximize Lithuania’s energy independence and to reduce the costs of natural gas for residents”, says Prime Minister Saulius Skvernelis.

Two main alternatives have been assessed. These are the long-term rent of the terminal after 2024 and the acquisition of the terminal. The decision to acquire LNG terminal after 2024 provides the consumer with the maximum benefit. When adopting decision regarding the terminal acquisition after 2024, it has been offered to distribute the terminal maintenance costs under the current model for a longer period. It will allow reducing the LNG infrastructure maintenance costs for the consumers by EUR 23 million as from 2019 (from EUR 66 million to EUR 43 million).

When addressing the reduction of the terminal costs before 2024, amendments to relevant legal acts related to this decision will be initiated during the autumn session of the Seimas (Lithuanian Parliament).

The Plan of Implementing Measures of the Government Programme specifies that decisions regarding the long-term assurance of LNG supply must be adopted before the end of 2018.

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