The Parliament of the Republic of Lithuania adopted the Law on the LNG Terminal, which ensures the required legal framework for construction of the LNG terminal in Lithuania, as well as establishes financial and organizational conditions for technologically and economically sound operation of the LNG terminal and its infrastructure, Klaipedos Nafta said in a statement.
The Law provides specific legal regulation applied to the LNG terminal project implemented following the decision by the Government of the Republic of Lithuania. AB Klaipėdos Nafta proceeds with the LNG terminal project 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, the company said.
The Law imposes 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.
It is established by the Law that costs of construction and operation of the LNG terminal, its infrastructure and connection to the natural gas transmission system may be included to the natural gas transmission tariff following the requirements established by the National Control Commission for Prices and Energy, Klaipedos Nafta said.
In order to ensure mandatory activities of the LNG terminal and effective competition in the Lithuanian natural gas market, the Law establishes 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.
Following mandatory requirements set by the EU with regard to security of the natural gas supply, it is planned that operation of the LNG terminal will be started not later than by 3 December 2014. The LNG terminal will be constructed in Klaipėda State Sea Port, Klaipedos Nafta added.
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LNG World News Staff, June 13, 2012; Image: Hoegh LNG