aA
The Jonava-based fertilizer producer Achema's business prospects were not taken into account when the Klaipeda-based LNG terminal's maintenance model was changed, an adviser to the Lithuanian president says.
Presidential adviser has doubts over LNG terminal's maintenance model
© DELFI (E.Skardžiaus nuotr.)

According to Jaroslav Neverovic, an energy expert and the presidential adviser leading the environment and infrastructure group, the LNG terminal's long-term strategy is based on a assumption that circumstances will not change and Achema will continue consuming as much gas as it does now. But if circumstances change, he says, the existing terminal costs covered by Achema will have to be paid for by other consumers.

"The key issue that's probably not been discussed properly is the issue of the biggest gas consumer in Lithuania, Achema," Neverovic told the Ziniu Radijas news radio on Tuesday.

In his words, the terminal's operator Klaipedos Nafta's (Klaipeda Oil) borrowing of 134 million euros from the Nordic Investment Bank and the redistribution of the terminal's maintenance costs are based on an assumption that micro- and macroeconomic conditions for businesses will be sufficiently good until 2044.

"But what if that strategy and circumstances changed? Then 50 percent of those costs would have to be paid by all consumers as that volume of gas that comes to Lithuania for consumption and the one who pays for it will disappear," Neverovic said.

"Those questions need to be answered. Whether that model is sustainable, whether it’s right and whether better alternatives exist," he added.

The NIB's 25-year loan will allow reducing the LNG terminal's maintenance costs as of Jan 1 and significantly reduce gas for consumers.

It was previously reported that the LNG terminal fee will go down by around 40 percent for all consumers in the country, or by around 27 million euros from around 62 to 36 million euros. Achema, which has imported around half of all LNG imported via the terminal this year, has paid around 20 million euros a year for the terminal's maintenance.

Achema, part of the Achema Group which owned a 10-percent stake in Klaipedos Nafta, has turned to courts over fairly all decisions related to the LNG terminal's maintenance. The group's major shareholder Lyda Lubiene said in July that Klaipedos Nafta's key shareholder, the Energy Ministry, was threatening to increase the terminal fee, which might lead to Achema's bankruptcy.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

OECD about Lithuania: COVID-19 crisis reinforces the need for reforms to drive growth and reduce inequality

Effective containment measures, a well-functioning health system and swift public support to firms and...

Restrictions may be imposed on shopping centers if they fail to limit shopper flows

The Lithuanian government may impose restrictions on shopping centers if they fail to regulate...

Paysera continues to expand in the Balkans: launched in Albania, eyeing Serbia

The Lithuanian-founded electronic payment network, Paysera , which provides a current account, money...

The Klaipėda FEZ community remains active during the COVID-19 pandemic

Over the past few years, the Klaipėda Free Economic Zone (FEZ) has become not only a large industrial...

The first-ever Nordic-Baltic Women Innovation Sprint begins

The first-ever Alter State Nordic-Baltic Women Innovation Sprint kicks off on November 19, 5 PM...

Top news

Lithuania extends lockdown until December 17 (1)

Lithuania's outgoing government on Wednesday extended the nationwide lockdown , in place since...

Vildana Hajric, Elena Popina | D+ nariams

Bitcoin advances above $18,000 as it retraces record 2017 surge

Bitcoin advanced for a third session on Wednesday, edging closer to its record highs of 2017 that...

Veryga: lockdown isn’t working as much as we would like to

The existing lockdown is not working as much as it is desirable, acting Lithuanian Health Minister...

2289 new coronavirus cases

On Tuesday, 2 289 new COVID-19 cases were recorded. In total, the country has already detected 51 655...

Lithuanian president appoints Simonyte prime minister

Lithuanian President Gitanas Nauseda has on Wednesday signed a decree appointing MP Ingrida Simonyte...

|Maža didelių žinių kaina