OREANDA-NEWS. October 19, 2012. Klaipedos Nafta AB (hereinafter, the “Company”) hereby informs that the National Control Commission for Prices and Energy (hereinafter, the “Commission”) in its meeting of 19 October 2012 intends to consider a draft of the investments planned by the Company into the liquefied natural gas terminal (hereinafter, the “LNG terminal”), installation of its infrastructure and connection. The Commission intends to publicly announce the material, related to the above consideration on 19 October 2012. Preliminarily, by 2015 these investments will amount to approximately LTL 453 million.
In order to compensate the said investments, the Company is going to raise funds from the following sources:

(i) about LTL 250 million would be funds borrowed from Lithuanian and/or international financial institutions;

(ii) about LTL 200 million would be natural gas consumers’ funds, i.e. revenue from the additional and integral component to the upper limit of the natural gas transmission price (the LNG terminal extra) in 2013 and in 2014 (the LNG terminal extra funds collected from gas transmission tariff in 2013 would amount to LTL 113,798 thousand).

According to the information presented by the financial consultants of the Company, the financial resources of the Company during the said period could amount to about LTL 300 million. The Company could allocate these funds towards financing the LNG terminal gas trading activities.   

Besides, the Company is going to address commercial banks for a bank guarantee in the amount of USD  50 million intended for securing the performance of the contract for lease of the floating storage, for a bank guarantee intended for securing the performance of the gas supply contract, and for a bank loan intended for formation of the working capital necessary for gas purchasing.

Also, seeking to secure proper performance of possible financial obligations to financial institutions, the Company has submitted an application to the Ministry of Energy of the Republic of Lithuania, asking it to apply to the Ministry of Finance of the Republic of Lithuania for including a limit of guarantees intended for financing loans for investments into the LNG terminal infrastructure (LTL 200 million), into the draft Law of the Republic of Lithuania on Approval of the Financial Indicators of the State Budget and Municipal Budgets for 2013.


The Company notes that all the data given in this notification are preliminary and planned, but not yet final, and may change during the implementation of the project (if the project will be implementable). Besides, on the date of this notification, the investment project discussed herein has not yet been approved by the National Control Commission for Prices and Energy (as indicated, the meeting to discuss this issue is planned for 19 October 2012), therefore, before the approval of the project there is no guarantee that it will actually be implementable.