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.

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