European Union funding for construction of LNG reloading station

2015-11-18 Company news

This year SC “Klaipedos Nafta”AB should get the first EU financial injection for construction of liquefied natural gas (LNG) reloading station – financing agreement has been signed according to the project „HEKLA – Helsingborg & Klaipeda LNG Infrastructure Facility Deployment”.

 

The contract provides that the majority (~60 percent or about 6 million EUR) of amount given to the project will be allocated to SC “Klaipedos Nafta” to implement LNG reloading station project. It is expected that 700.000 EUR, the first tranche or EU support, will reach the Company this year.
 
 
In HEKLA project, which aims to promote the use of LNG as clean fuel in the Baltic region, SC “Klaipedos Nafta” participates together with a partner – Helsingborg (Sweden) port. Financial support for this project was approved in July. There will be LNG liquefaction plant built in Helsingborg. And the LNG reloading station, designed to fill ships with LNG fuel and transport LNG by trucks, will be built in Klaipeda, in the current territory of SC “Klaipedos Nafta”.
 
 
The construction or LNG reloading station should start at the end of the year 2015 – the beginning of 2016, when the contract with the construction contractor is signed. Currently the Company is pending for the initial proposals from potential contractors.
 
 
“It is a year since large scale LNG import terminal has been functioning successfully in Klaipeda port. It can be used versatile and includes alternative gas supply source and LNG reloading functions. As you know, stricter requirements for dioxide emission to the environment into the Baltic sea came into force this year, so LNG fuel is considered as alternative fuel to fuel oil; LNG can also be adapted for land transport as well as fuel for industrial facilities which are located further from the pipeline. Therefore LNG reloading station will not only promote cleaner fuel for the transport and industrial sectors, but also encourage efficient operations of LNG terminal” says Mantas Bartuška, the CEO of SC “Klaipedos Nafta”.
 
 
The State owns 72,32 percent of SC Klaipedos Nafta shares.

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