Lithuania Hires Germany’s PPS for LNG Terminal Pipeline Link

Klaipedos Nafta AB, Lithuania’s state- controlled energy company, hired PPS Pipeline Systems to connect a new natural-gas terminal to the country’s grid after a court lifted a temporary ban on the agreement.

PPS of Germany will by August 2014 build the 20-kilometer (12-mile) pipeline link needed for a floating liquefied natural- gas terminal on the Baltic Sea coast, the Klaipeda-based energy company said in a regulatory statement after signing a 115 million-litai ($43 million) contract today.

Lithuania is building the LNG terminal to diversify its gas imports and reduce reliance on Russia’s OAO Gazprom. A lawsuit filed by a Lithuanian bidder that lost the pipeline tender threatened to delay plans to complete the terminal by the end of 2014 until the Baltic nation’s Court of Appeal annulled a lower court’s suspension of the tender on April 16.

The contract with PPS will take effect when it’s approved by shareholders of Klaipedos Nafta, the company said.

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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