LNG terminal approved

Upon completion the terminal will allow Lithuania to import natural gas from Klaipėda as well as Russian pipelines.

VILNIUS — The Lithuanian government made a significant step forward in reducing its energy dependence on Russia on Friday by approving the construction of the floating liquid natural gas import terminal.

The terminal, which has been in the works for nearly two years now, will float in the Baltic Sea off the coast of Lithuania, which will allow the country to get gas delivered by ship. The new ability to import gas from abroad will decrease the country’s dependence on Russia. Currently all of the country’s gas comes from its volatile eastern neighbor.

Though the exact location for the plant is yet unknown, the country’s Prime Minister Andrius Kubilius said that the terminal would make gas cheaper and shore up supply, letting the country avoid politically motivated cuts in supply.

“This decision is very important, however, it is not the only step in realizing the government’s strategy to seek full energy independence,” Kubilius said in a statement to the press.

After the decision by the government was reached, he told reporters that the country would continue to seek energy independence.

“Our main task is to create alternative and independent sources of natural gas supplies,” Kubilius told journalists after the meeting.

The 3 billion cubic meter gas import terminal will satisfy all of Lithuania’s current demand for gas, though others are expected to use it, such as Belarus whose president recently expressed interest in the project.

The government-owned company Klaipėdos Nafta will be created to oversee the floating terminal, though private companies have also been encouraged to get involved.

For every 1,000 cubic meters of liquid natural gas, Lithuanians pay more than $100 more than their European counterparts, the prime minister said. Kubilius said that for this reason, the LNG plant was an economic decision.

The construction of the terminal is directly related to the implementation of the European Union directive known as third energy package in Lithuania, the government said in press release. The third package calls for the separation of gas production and supply from transmission networks.

This article is free to view. To read Baltic Reports’ subscription-only articles, click here.

Leave a Reply

*

ADVERTISEMENT

© 2010 Baltic Reports LLC. All rights reserved. -