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The European Investment Bank (EIB) is lending EUR 87 million to terminal operator Klaipedos Nafta for the construction and operation of a new liquefied natural gas (LNG) import facility located in the port of Klaipeda.

The LNG terminal comprises a floating storage and regasification vessel (leased by Klaipedos Nafta), an offshore jetty including gas handling facilities and an 18-kilometre pipeline connection to the Lithuanian gas grid, which are being financed by the EIB loan. The project is planned to be finalised by the end of 2014.

"The EIB strongly promotes security and diversification of energy supply. We therefore particularly welcome this agreement with Klaipedos Nafta, as the project will ensure the sustained supply of a key source of energy and will increase competition in Lithuania. We would obviously like to see this as the first of a series of energy projects that we could finance in Lithuania," said EIB Vice-President Pim van Ballekom at the signing ceremony.

Lithuanian Minister of Energy, Jaroslav Neverovič, commented: "The LNG terminal in Klaipėda is a critical component of Lithuania’s energy strategy as it is the alternative solution for gas diversification in the short term. This EIB loan is vitally important for timely construction of the necessary infrastructure already by the end of next year. It will bring transparent competition to the gas market, with national and possibly regional consumers set to benefit."

"We are delighted that Klaipedos Nafta concluded this loan agreement with the EIB today. This long-term loan will be the backbone of the LNG terminal’s project financing and will ensure that the project will be completed in a timely fashion. This is very important as the LNG terminal will bring competition to the Lithuanian gas market for the first time ever," remarked Rokas Masiulis, CEO of Klaipedos Nafta.