The European Commission (EC) has approved under EU state aid rules the compensation granted by Lithuania to Litgas for supplying a mandatory quantity of liquefied natural gas to the LNG terminal in Klaipėda to keep it cool.

According to the EC, the LNG terminal has, since its construction, played a vital role in the diversification of gas supplies and security of supply in Lithuania. Although it has not been fully used since it began operations, many believe that its presence was instrumental in lowering the price offered by Gazprom, although end-users have asked for the contract with the vessel provider Hoegh to be terminated owing to the cost of maintaining it. One, Achema, has protested about the money it has to pay as its share.

In June 2018, Lithuania notified the EC of certain changes to the aid scheme approved in 2013, whereby it no longer obliged heat and power generators to buy a certain amount of gas from Litgas to cover the costs of the LNG purchases. Taking into account the developments on the gas market, the EC said, Litgas will sell its gas directly on the market.

The EC has approved both the scheme in force for the period from 2016 until the end of 2018 and the modified scheme for the period from 2019 until the end of 2024. The non-confidential version of the decision will be made available  once any confidentiality issues have been resolved, the EC said.

Moreover, the Klaipeda seaport will contribute to the EU's Energy Union objective to reduce energy import dependency by diversifying supply and creating a fully interconnected EU-wide energy market.

In August 2018, Lithuania received through the Klaipeda seaport its first LNG shipment from the US, in line with the joint statement by the EU president Jean-Claude Juncker and the US president Donald Trump in July to strengthen EU-US strategic co-operation with respect to energy.