Lithuanian LNG Terminal Secures 25 Per Cent Market Share

A proposed 25 per cent market share has been awarded to the Port of Klaipeda LNG terminal in Lithuania, as part of a governmennt decree on the project and energy diversification.

The draft law was passed by a resounding majority, with 109 ministers voting for the law and only 9 against. Through the legislation, a number of terms and conditions have been set out detailing the execution of the project.

Operator Klaipedos Nafta says that the legislation sets forth financial and organisational conditions for the project as well as "specific obligations for public administration bodies and entities with regard to construction of the LNG terminal, its connection to the natural gas transmission system and supply of natural gas."

Most importantly for competition in the market, the terminal will now provide at least 25 per cent of Lithuania's gas needs, helping to break the country's reliance on Russian major Gazprom. Currently, Gazprom supplies 100 per cent of Lithuania's gas needs.

Earlier this week, Lithuanian PM Andrius Kubilius said the 25 per cent minimum supply through the terminal was essential to break the "shackles" of Gazprom supply.

"Unless 25 percent of the gas quota is provided through the LNG terminal, the largest gas customers in Lithuania will be shackled to Gazprom with long-term supply contracts and the terminal is reduced to a useless scrap metal pile," he said. 

The LNG terminal, which will be constructed with specialist LNG vessel and regasification supplier Höegh LNG, will be constructed no later than the 3rd of December 2014, to comply with EU directives on competition and energy security.