Klaipedos Nafta, Klaipeda State Seaport to Invest in Seaport LNG

Klaipedos Nafta and the Klaipeda State Seaport authority have signed an investment agreement to ready the Klaipeda Seaport for LNG activity.

The additional agreement to General Bilateral Agreement on Development of Infrastructure/Suprastructure of the Klaipeda Seaport, signed on Tuesday, will see the two invest in a number of projects in the Lithuanian port.

Through this agreement, a number of investment areas have been identified. The Seaport authority will invest LTL 106,426,410 (excluding VAT -- approximately €30.8 million) into preparing the Klapeida Port for the planned LNG terminal. This investment will cover such activities as dredging works, equipment of radiolocation and upgrading of systems of the Port, Klapeidos Nafta said.

On Klapeidos Nafta's side, two investments will be made. The first, an investment of LTL 54,203,577 (excluding VAT -- approximately €15.7 million), will be made into port infrastructure projects. This investment will be compensated by the Seaport Authority. The second, an investment of  LTL 54,804,866 (excluding VAT -- approximately €15.9 million), will be used for the suprastructure of the port, including the necessary equipment for planned floating storage and regasification unit (FSRU).

The investments of the Authority into the infrastructure of the port will be compensated from charges paid by the LNG terminal operator and third parties that use the port for LNG trade.