The Lithuanian government is considering several options to reduce the costs of maintenance of the Klaipėda liquefied natural gas (LNG) terminal, Prime Minister Algirdas Butkevičius said on Friday.
© DELFI / Orestas Gurevičius

However, Butkevičius would not say if these options include purchasing the terminal's floating storage and regasification unit (FSRU), which it leases from Norway's Hoegh LNG.

"This is confidential information," he told reporters when asked if the acquisition of the FSRU was being considered.

Butkevičius spoke after chairing a meeting of a commission in charge of the LNG terminal project implementation.

Klaipėdos Nafta (Klaipėda Oil), the terminal's operator, will have a month to analyse three options and choose the best one for lowering the costs, which currently amount to around 61 million euros annually, Butkevičius told reporters after the commission's meeting.

"The aim is to ensure that the LNG terminal does not increase the costs and the price of gas in Lithuania starting from the autumn of next year (when the payment of compensation to consumers for overpaying for Gazprom's gas should end)," he said.

Energy Minister Rokas Masiulis made it clear that Hoegh LNG and other companies would have to be involved in discussions in order to cut the terminal's costs.

"Any reduction (of costs) will involve third parties. Hoegh LNG and the servicing companies," he told reporters after the meeting.

Under a contract signed in March 2012, the lease costs Klaipėdos Nafta 189,000 US dollars daily, or 68.9 million dollars per year, or 689 million dollars over ten years.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuania to purchase LNG terminal's vessel amid cost cutting efforts

The Lithuanian government approved on Wednesday the legislation, opening doors for the buyout of the...

Lietuvos Energija is Acquiring a Wind Farm Development Project in Poland

Lietuvos Energija , a group of energy companies, further pursues the international strategy provided...

Latvenergo starts selling natural gas in Lithuania

Latvia's state energy company Latvenergo has started offering natural gas to its customers in...

Brussels preparing for talks with Russia on Baltic power systems

The European Commission is getting ready to start consultations with Russia over the switching of...

The biggest Lithuanian energy company expands in Poland

The Lithuanian state capital energy company group Lietuvos Energija moves forward with...