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“.

Official: ban on Ukrainian poultry imports won't affect our market

The European Commission's ban on imports of Ukrainian poultry meat and poultry products will have...

Some 200 new points of sale of illegal tobacco emerged

204 new points of sale of illegal tobacco emerged in Lithuania, with their number going up by a...

Tourism: Lithuania had biggest growth of nights spent in EU

In 2019, the number of nights spent in tourist accommodation in the European Union (EU) is expected...

No contamination found in Curonian Lagoon fish

Tests have found no contamination in fish from the Curonian Lagoon despite the release of untreated...

Debates started to get a grip on environmental polluters

The of Lithuanian Seimas during its extraordinary session on Thursday started deliberating a package...

Top news

Crazy about coffee: Ukrainian is looking for best cafe in Vilnius (4)

Some people have a passion. For Ukrainian student Oleksandra Kyryliuk coffee is her number one...

Plans to commemorate Baltic Way by naming roads

Lithuania plans to commemorate the Baltic Way , which took place more than 30 years ago, by naming...

Official: ban on Ukrainian poultry imports won't affect our market

The European Commission's ban on imports of Ukrainian poultry meat and poultry products will have...

Foreign ministry advised against travel to central China due to coronavirus

The Lithuanian Foreign Ministry has advised Lithuanian citizens against traveling to China 's central...

Number of barred people up as immigration grows

The number of people barred to enter Lithuania rose last year, and the country's State Border Guard...