August 27, 2018 [The Baltic Course] - Lithuania's purchase of the Klaipeda LNG terminal's floating storage and regasification unit (FSRU) from Norway's Hoegh LNG after 2024 would help reduce its maintenance costs by around one third, Energy Minister Zygimantas Vaiciunas said LETA/BNS.
The minister spoke after the government’s Economic Infrastructure Development Commission decided earlier in the day that buying the FSRU would be the best option for Lithuania.
“We now pay 66 mln euros for the LNG infrastructure and that (cost) would go down at least by 23 mln euros, possibly to 35 mln euros. We have a clear message that this decision on the acquisition of the terminal allows us to reduce the terminal’s maintenance costs by about one-third,” he told reporters.
Vaiciunas added, however, that Lithuania could purchase another vessel if its price were lower than that of the Independence.
“The price of the vessel is between 120 mln and 160 mln euros. There is assurance from Klaipedos Nafta that, in any case, they will buy the most competitive ship at the time, that is, at the best price. So, we aren’t necessarily talking about the acquisition of this vessel,” he said.
The minister said that Lithuania could sold the vessel if conditions in the market became unfavorable, adding that this was an additional argument for buying rather than leasing the FSRU.
Mindaugas Jusius, CEO of Klaipedos Nafta, the LNG terminal’s operator, said that the company analyzed various options and compared them with the scenario where the FSRU leaves Klaipeda after the lease agreement with Norway’s Hoegh LNG expires in 2024.
“I can’t disclose specific figures, but the figures used for comparison were that the terminal’s average annual costs would amount to around 40 mln euros in case of acquisition, while the lease figure was about 50 (mln euros),” he said.
Jusius said that Klaipedos Nafta plans to use both borrowed money and its own funds for the acquisition of the vessel.
“Our main priority is, of course, to attract funds from institutional banks, which are the cheapest, but we don’t rule out attracting financing from other banks. Also, the company itself is ready to invest a part of its own capital to carry out this project,” he said.
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