The Lithuanian Parliament has voted to operate the country's existing LNG import facility at least until 2044. The government has confirmed this decision and has advised the state-run terminal operator Klaipėdos Nafta to either purchase the existing leased operational floating storage and regasification unit (FSRU) by late 2024 or to replace it with a new LNG storage vessel after this date. Lithuania currently uses the Independence FSRU under the framework of a 10-year lease, which runs out at the end of 2024.
The government has also announced that it will guarantee a loan to Klaipėdos Nafta of up to €160m to finance either the purchase or the replacement of the existing FSRU. The company currently expects to hold an international tender for a FSRU between 2021 and 2024.
Lithuania uses LNG instead of Russian gas to ensure more competitive prices and break Gazprom's monopoly on natural gas supplies. The introduction of the first FSRU forced Russia to cut its prices by a third, removing its ability to use fuel costs as a means of political constraint on Lithuania. With this 20-year expansion, the country would be able to strengthen its energy security and ensure a significant pricing pressure for the Russian gas deliveries.
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