Klaipedos Nafta AB - Notification on material event

The Parliament adopted the Law on the Liquefied Natural Gas Terminal

On 16 June 2012 the Parliament of the Republic of Lithuania adopted the Law on
the Liquefied Natural Gas Terminal, which ensures the required legal framework
for construction of the liquefied natural gas (LNG) terminal in Lithuania, as
well as establishes financial and organizational conditions for technologically
and economically sound operation of the LNG terminal and its infrastructure. 

The Law provides specific legal regulation applied to the LNG terminal project
implemented following the decision by the Government of the Republic of
Lithuania. AB Klaipėdos Nafta proceeds with the LNG terminal project based on
the Governmental Resolutions “On development of the LNG terminal project” of 21
July 2011 and “On construction of the LNG terminal” of 15 February 2012, and
other relevant decisions. 

The Law imposes requirements for the company implementing the LNG terminal
project, financing of its implementation, as well as specific obligations for
public administration bodies and entities with regard to construction of the
LNG terminal, its connection to the natural gas transmission system and supply
of natural gas. 

It is established by the Law that costs of construction and operation of the
LNG terminal, its infrastructure and connection to the natural gas transmission
system may be included to the natural gas transmission tariff following the
requirements established by the National Control Commission for Prices and
Energy.

In order to ensure mandatory activities of the LNG terminal and effective
competition in the Lithuanian natural gas market, the Law establishes the rule
for diversification of the natural gas supply, by which entities importing
natural gas through the pipelines would be required to purchase through the LNG
terminal at least 25 per cent share of the total quantity of natural gas
supplied. 

Following mandatory requirements set by the EU with regard to security of the
natural gas supply, it is planned that operation of the LNG terminal will be
started not later than by 3 December 2014. The LNG terminal will be constructed
in Klaipėda State Sea Port. 


         Mantas Bartuška, Finance Director, tel.: +370 46 391 763