PPS Won’t Block Lithuanian LNG-Link Project After Losing Tender

PPS Pipeline Systems GmbH of Germany won’t seek to delay a project to link Lithuania’s liquefied natural-gas terminal to its distribution network after losing a bid for its construction.

PPS Pipeline Systems filed a complaint with Lithuania’s Procurement Office after state-controlled Klaipedos Nafta AB (KNF1L), which is building the LNG terminal on the Baltic Sea, last month picked a group including Kauno Dujotiekio Statyba AB and Siauliu Dujotiekio Statyba UAB to build the 20-kilometer (21.8-mile) pipeline link for 138 million litai ($53 million).

PPS asked Klaipeda District Court to determine whether the Lithuanian group that won the tender had an unlawful advantage, the Quakenbruck, Germany-based company said in an e-mailed statement distributed by public relations company VRT today.

“We don’t ask for temporary restraining measures that could stop the tender,” Peter Legler, managing director at PPS Pipeline Systems, said in the statement. “PPS Pipeline Systems has no desire to obstruct the LNG terminal project.”

Lithuania’s plan to start operating a floating LNG terminal on the Baltic Sea coast in late 2014 is the core of a strategy to reduce reliance on OAO Gazprom and convince the Russian gas company to reduce its prices. Energy terminal operator Klaipedos Nafta in March signed an agreement with Hoegh LNG (HLNG) to lease a terminal that Hoegh is now building.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.