Klaipedos Nafta - Notification on material event

Decision of the National Commission for Energy Control and Prices on approval of the liquefied natural gas terminal project capital expenditure has been taken

AB Klaipėdos Nafta (the “Company”) hereby informs that on 17 October 2014 the
National Commission for Energy Control and Prices (the “NCECP”) took a
decision, by which it: 

(i) approved the liquefied natural gas terminal project presented by the
Company, establishing that the preliminary value of the project was LTL 301
million (EUR 87.2 million); 

(ii) established that the above-indicated project value would be used in
calculating the additional component of natural gas supply security on the
upper limit (cap) of the natural gas transmission price for 2015; 

(iii) obligated the Company to adjust the above-indicated project value after
the liquefied natural gas terminal project is implemented and, following
settlement with the contractors and suppliers, provide the data and information
to NCECP within 30 days, which shall be used for execution of the audit and
clarification of the project value indicated in item (i) above. 

Thus, with regard to the above-indicated decision, the Company would like to
point out that the above-indicated project value is tentative, but not final
and can change in the course of implementation of the project. The Company will
have to adjust the project value as indicated in item (iii) above. 

The additional component of natural gas supply security on the upper limit of
the natural gas transmission price, which will be calculated by use of the
project value set by the NCECP, as indicated in item (i) above, is intended for
compensation of fixed operational costs of the liquefied natural gas terminal,
necessary to ensure operation of the liquefied natural gas terminal. It will be
paid in addition to the upper limit of the natural gas transmission price by
system users, which transport natural gas by the transmission system. 






         Mantas Bartuška, General Manager, +370 46 391 763