Klapeidos Nafta/Höegh LNG Lithuanian Terminal Deal Approved

A deal between Höegh LNG and Klapeidos Nafta to build a $500 million dollar LNG terminal in Lithuania will move ahead, following the approval of the deal by Klapeidos' shareholders.

The $500 million award will be paid at $50 million annually over a ten-year period.

Following an Extraordinary General Meeting yesterday, Klapeidos Nafta's shareholders voted to continue the implementation of the deal struck between the two companies earlier this month.

The decade-long contract will see Höegh construct a liquefied natural gas (LNG) terminal in Lithuania as well as leasing, operating and maintaining a floating LNG storage and regasification unit (FRSU).

Work is expected to commence on the project from the second half of 2014. Under the terms of the contract, Höegh LNG will supply one of three regasification units currently under construction at Hyundai Heavy Industries in South Korea.

Following the approval from the Klapeidos Nafta shareholders, the project will continue as planned and the contract between the companies will be concluded.