Klaipedos Nafta AB - Notification on material event

National Control Commission for Prices and Energy approved the Methodology of Fixing State-regulated Prices in the Natural Gas Sector

On 12 September 2013 the National Control Commission for Prices and Energy      
 approved the Methodology of Fixing State-regulated Prices in the Natural Gas   
 Sector (hereinafter, the Methodology).                                         
In implementation of the requirements of Article 5 (the version that will come  
 into effect on 1 January 2014) and Article 11 of the Law of the Republic of    
 Lithuania on the Liquefied Natural Gas Terminal, the Methodology, inter alia,  
 provides for the pricing of services of an entity in natural gas liquefying    
 business, which establishes the calculation of an additional natural gas supply
 safety component in addition to the upper limit of the natural gas transmission
 price (hereinafter, the Safety Component) and the calculation of the upper     
 limit of natural gas liquefying service price.                                 
The need for funds for the construction of the liquefied natural gas            
 (hereinafter, LNG) terminal is established after taking into account the       
 financial resources necessary for the implementation of the LNG terminal       
 investment project and evaluating the presented documents, which prove that the
 company implementing the LNG terminal project does not have a possibility to   
 make use of other possible project financing sources or other means that can   
 ensure financing of the project. The Safety Component is calculated after      
 evaluating the funds necessary for compensating, in full or in part, for the   
 expenses of construction of the LNG terminal, its infrastructure and connection
 and all fixed operating expenses necessary for ensuring the operation of the   
 LNG terminal, its infrastructure and connection.                               
The Methodology establishes the procedure of calculation of the upper limit of  
 price of natural gas liquefying service (hereinafter, the Price of Liquefying) 
 by evaluating all variable expenses of liquefying activity.                    
The Methodology provides for a possibility to adjust the Safety Component and   
 the Price of Liquefying by use of relevant coefficients set each year.         
AB Klaipėdos Nafta currently performs the functions of the LNG terminal project 
 implementation company and is entitled to the receipt of funds, under the      
 procedure and conditions established by legal acts, intended for compensating, 
 in full or in part, for the expenses of construction and operation of the LNG  
 terminal, its infrastructure and connection.                                   
Following Resolution No. O3-317 of the National Control Commission for Prices   
 and Energy, dated 19 October 2012, the amount established for 2013 for         
 compensating, in full or in part, for the expenses of construction of the LNG  
 terminal, its infrastructure and connection is LTL 113,798,000.                






         Mantas Bartuška, Director of the Finance and Administration
Department, 8 46 391 763