Klaipedos Nafta Juggles Tenders, Finance for Baltic LNG Terminal

Klaipedos Nafta AB (KNF1L), Lithuania’s state-controlled energy terminal operator, is close to resolving all remaining issues related to finances and public tenders for a new natural-gas terminal on the Baltic Sea.

“Signing contracts soon with builders of a jetty and a pipeline link should ensure we can start up the terminal by late 2014,” Klaipedos Nafta Chief Executive Officer Rokas Masiulis told reporters today in Vilnius, the capital.

Lithuania is building the floating liquefied natural-gas terminal to diversify its gas imports and reduce reliance on Russia’s OAO Gazprom. Cash from the company’s profitable oil business will help pay for the roughly $800 million LNG project, alongside a February overdraft deal with Nordea Bank AB and long-term loans from international lenders, Masiulis said.

Klaipedos Nafta today said it selected AS BMGS of Latvia to build on-shore infrastructure for the terminal for 94 million litai ($35 million) plus value-added tax. Revised final bids in a tender to build a 20-kilometer (21.8-mile) pipeline linking the terminal to Lithuania’s gas grid are due on March 6, according to Masiulis.

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

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