Klaipedos Nafta AB - Notification on material event

The Government approved the draft Law on the Liquefied Natural Gas Terminal

On 9 May 2012 the Government of the Republic of Lithuania approved the draft
Law on the Liquefied Natural Gas Terminal, which aims at regulation of general
principles and requirements for construction of the liquefied natural gas (LNG)
terminal within the territory of the Republic of Lithuania, its operation and
usage, as well as establishing adequate legal, financial and organizational
conditions for implementation of the LNG terminal project. 

The draft Law introduces 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 in
Klaipėda 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 made by the Government of the
Republic of Lithuania. 

It is aimed under the draft Law to establish principle decision by the
Parliament of the Republic of Lithuania on construction of the LNG terminal and
natural gas infrastructure necessary for its effective operation within the
territory of the Republic of Lithuania. It is foreseen that the LNG terminal
shall be constructed in Klaipėda State Sea Port or other site approved by the
Government of the Republic of Lithuania. 

The draft Law establishes 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. 

In order to ensure mandatory activities of the LNG terminal, i.e.
technologically and economically sound operation of the terminal, and effective
competition in the natural gas market of the Republic of Lithuania, the draft
Law aims at establishing 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. 

The Law will ensure the required legal framework for implementation of the LNG
terminal project and will reduce administrative burden for entities
participating in the implementation process, so as to enable the start of
operation of the LNG terminal not later than by 3 December 2014, as it is
mandatory required under the EU provisions on supply of natural gas. 




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