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Klaipedos Nafta and Fluxys have signed a memorandum of understanding (MoU) to collaborate in the development of small-scale LNG projects and infrastructure in Europe.

Commenting on the news, Mindaugas Jusius, CEO of Klaipedos Nafta, said: "The LNG infrastructure established and developed by Klaipedos Nafta is a driver of an LNG logistic chain in the Baltic Sea Region, and optimal utilisation of the infrastructure facilities is very important. We will seek to achieve this jointly with one of Europe's largest market players. Therefore, the memorandum of understanding is a highly significant document that enables both parties to comprehensively develop the LNG infrastructure and its utilisation in European or Nordic markets."

Jusius also noted that Belgium had developed into a 'first-mover' LNG distribution hub with the development of the Zeebrugge LNG terminal.

Fluxys LNG - the owner and operator of the Zeebrugge LNG terminal - recently launched its second jetty at the facility. With the second jetty now in operation, small bunker vessels are able to berth, load LNG and then resupply to other LNG-powered vessels or small bunker terminals. The new jetty is designed to receive LNG carriers ranging from the smallest ships with an LNG capacity of 2,000 cubic metres (cbm) up to larger vessels with a 217,000-cbm capacity.

Klaipedos Nafta, meanwhile, is operator of the floating LNG terminal in Lithuania and responsible for the development of the LNG reloading station, which is scheduled to start operating later this year. The company also operates the Klaipeda Oil Terminal.

Lithuania's Energy Minister, Zygimantas Vaiciunas, who was present at the signing, said: "The memorandum will enable the companies to be more proactive both in the Baltic Sea Region and beyond. Klaipeda will become an active LNG distribution centre in the LNG supply chain in the Nordic countries and Europe as a whole. It is symbolic that Klaipedos Nafta is signing the memorandum with one of the European Union's largest and most dynamic LNG market participants at the time of implementation of the LNG distribution station project."

"Belgium's experience is very valuable for the implementation of a small-scale terminal in Klaipeda as an efficient LNG hub performing regional functions, as a number of key elements - the port LNG infrastructure, the mainland LNG infrastructure and the market - have to be linked together into a cohesive system. It is expected that the MoU will provide an impetus for mutual collaboration," Klaipedos Nafta said.

Image: The floating storage and regasification unit (FSRU) Independence, operated by Klaipedos Nafta.