AS KN SHAREHOLDER MEETING DIDN’T TAKE PLACE, THE DECISION ON THE REDUCTION OF THE SAFETY CONSTITUENT IS UNLIKELY TO BE IMPLEMENTED AS OF JULY 1

Due to the absence of quorum at a KN (AB „Klaipėdos nafta“) shareholder meeting held on Thursday, decisions regarding  the transfer of KN regulated activities to the subsidiary company UAB SGD Terminalas have not been adopted. The common goal to buy out the LNG storage vessel by distributing its maintenance costs throughout the entire period of its activity has not changed. However, it would be unrealistic to implement decisions to reduce the safety constituent for consumers from July 1.

The transfer of LNG regulated activity is very important for KN in seeking to implement obligations related to the reduction of the safety constituent.

“We have been ready to carry out an action plan aimed at reducing the safety constituent in the nearest future. The transfer of regulated activity to the subsidiary company is an important part of the project’s financial plan. The fact that the shareholder meeting didn’t take place and the necessary decisions were not adopted is a significant deviation from our plan. Therefore, the project’s schedule will have to be corrected,” said CEO of KN Mindaugas Jusius. 

The KN general shareholder meeting didn’t take place as KN’s second largest shareholder and biggest gas consumer in the country, the concern Achemos Grupė, presented a claim regarding KN’s plans to transfer LNG regulated activity to the subsidiary company.

“In the coming days we will examine the claim of our second largest shareholder and assess all issues raised by it. Then we will have a clear vision of how our common plan will be changed and when the safety constituent for consumers could be reduced,” pointed out Mr Jusius. 

72% of KN’s shares is owned by the State, with Achemos Grupė, UAB holding 10% of shares.