Klaipedos Nafta AB - Other information

Klaipedos Nafta, AB Signs Agreement with U.S. Energy Company Cheniere

The Lithuanian company Klaipedos Nafta announced today that is has signed a
Memorandum of Understanding (“MOU”) with U.S. energy company Cheniere to
address its future natural gas needs and assess LNG purchase and supply
options.  This agreement has been signed at the Embassy of the Republic of
Lithuania in the United States of America. 

“Today we signed an MOU with Cheniere to initiate discussions on natural gas
supply options and the optimal structure under which Cheniere would be the
future LNG supplier for our Klaipeda LNG receiving terminal project being
designed with an initial LNG import capacity between 1.5 to 2.2 million tonnes
per annum(“mtpa”), with expansion capabilities. Due to intensive shale gas
developments, the U.S. has the potential to become a meaningful exporter of
natural gas, which would not only benefit our project but our country as well,
by providing a more diversified source of supply in Lithuania and boosting
energy security,” said Rokas Masiulis, General Manager of Klaipedos Nafta. 

“We look forward to working with Klaipedos Nafta on developing solutions for
their natural gas needs in Lithuania. The U.S. is becoming recognized as a key
potential source of natural gas for global markets as evidenced by the
widespread interest we have received around our liquefaction project at Sabine
Pass LNG. With the abundance of estimated natural gas reserves and the
expectation that gas prices will remain competitive for years to come, the U.S.
is positioned to become an attractive, low cost alternative supplier of natural
gas for international buyers,” said Charif Souki, Chairman, President and CEO
of Cheniere Energy, Inc. “We are confident that the U.S. administration and
government support free trade and recognize the important role that the U.S.
can play in the global energy markets. Exporting LNG to Lithuania will allow
one of our allies to diversify its natural gas supply, increase its energy
security and strengthen its economy. Cheniere is happy to fill this important
role in the global energy markets.” 

Klaipedos Nafta is in the process of building the first LNG import terminal on
the Eastern Baltic coast, for use in Lithuania and potentially for export to
its Baltic region neighbors. Lithuania intends to become one of the first
European countries to implement the European Union's Third Package of energy
market reforms, which would result in the creation of a free and open energy
market similar to what now exists in the U.S. The development of the Klaipeda
LNG terminal is a critical component in the plan to open the energy markets in
the Baltic region. 

Subject to the terms and conditions of the MOU, Cheniere and Klaipedos Nafta
have agreed to proceed with negotiations to discuss various LNG supply
structures, which if successful, would lead to negotiations of a long term LNG
purchase and supply agreement or similar type agreement. 

Cheniere, through its subsidiary Cheniere Energy Partners, operates the Sabine
Pass LNG terminal and has initiated a project to add liquefaction services that
would transform the terminal into a bi-directional facility capable of
liquefying natural gas and exporting LNG in addition to importing and
regasifying foreign-sourced LNG. As currently contemplated, the liquefaction
project would be designed and permitted for up to four LNG trains, each with a
nominal production capacity of approximately 4.0 mtpa. The Sabine Pass LNG
terminal is strategically situated along the Gulf Coast, where natural gas
markets are very liquid, both on the production and consumption side; with
approximately 30 Bcf/d of fully integrated physical supply, pipeline
infrastructure, storage, and market delivery capability. 

Klaipedos Nafta owns and operates one of the most modern crude oil and crude
oil products terminals in Europe. It operates in the ice-free port of Klaipeda,
a major Lithuanian transport junction connecting sea routes, motorways and
railways between the East and West. Klaipedos Nafta is currently in the process
of building the first LNG import terminal on the Eastern Baltic Sea shore with
an initial LNG import capacity between 1.5 to 2.2 million tones. 






         Johana Bučienė, Chief Financier, 8 46 391 636