OREANDA-NEWS. May 10, 2012. On 9 May 2012 the Government of the Republic of Lithuania approved the draft Law on the Liquefied Natural Gas Terminal, which aims at regulation of general principles and requirements for construction of the liquefied natural gas (LNG) terminal within the territory of the Republic of Lithuania, its operation and usage, as well as establishing adequate legal, financial and organizational conditions for implementation of the LNG terminal project.

The draft Law introduces specific legal regulation applied to the LNG terminal project implemented following the decision by the Government of the Republic of Lithuania. AB Klaipedos Nafta proceeds with the LNG terminal project in Klaipeda based on the Governmental Resolutions “On development of the LNG terminal project” of 21 July 2011 and “On construction of the LNG terminal” of 15 February 2012, and other relevant decisions made by the Government of the Republic of Lithuania.

It is aimed under the draft Law to establish principle decision by the Parliament of the Republic of Lithuania on construction of the LNG terminal and natural gas infrastructure necessary for its effective operation within the territory of the Republic of Lithuania. It is foreseen that the LNG terminal shall be constructed in Klaipeda State Sea Port or other site approved by the Government of the Republic of Lithuania.

The draft Law establishes requirements for the company implementing the LNG terminal project, financing of its implementation, as well as specific obligations for public administration bodies and entities with regard to construction of the LNG terminal, its connection to the natural gas transmission system and supply of natural gas.

In order to ensure mandatory activities of the LNG terminal, i.e. technologically and economically sound operation of the terminal, and effective competition in the natural gas market of the Republic of Lithuania, the draft Law aims at establishing the rule for diversification of the natural gas supply, by which entities importing natural gas through the pipelines would be required to purchase through the LNG terminal at least 25 per cent share of the total quantity of natural gas supplied.

The Law will ensure the required legal framework for implementation of the LNG terminal project and will reduce administrative burden for entities participating in the implementation process, so as to enable the start of operation of the LNG terminal not later than by 3 December 2014, as it is mandatory required under the EU provisions on supply of natural gas.