Lithuania to purchase LNG terminal's vessel amid cost cutting efforts

Source: Xinhua| 2018-11-22 01:54:34|Editor: yan
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VILNIUS, Nov. 21 (Xinhua) -- The Lithuanian government approved on Wednesday the legislation, opening doors for the buyout of the country's liquefied natural gas (LNG) terminal's floating storage and regasification unit (FSRU) which Lithuania currently leases.

The legislation allows the country's state operated company Klaipedos Nafta to purchase the FSRU vessel named Independence by the end of 2024.

The vessel is a part of the country's strategic LNG terminal built to ensure diversification of natural gas sources and Lithuania's energy independence.

Currently, Lithuania leases the FSRU vessel from Norwegian company Hoegh LNG. Before making the decision, Lithuania had been considering options of whether to continue leasing the vessel or purchasing it.

The Lithuanian Energy Ministry argues that the purchase would help cutting the costs of operating the vessel.

The annual operation costs of the vessel amount to around 66 million euros, and decision to purchase the vessel would cut the costs by around 20 million euros.

"This decision is based on rational logics, thorough calculations, is of strategic importance and most importantly useful for all gas consumers," said Lithuanian Energy Minister Zygimantas Vaiciunas in a statement on Wednesday.

The country's LNG terminal in Klaipeda Seaport, western Lithuania, and its FSRU vessel Independence officially started its commercial operations on the first day of 2015 in order to provide energy independence from Russian gas.

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