COBALT advised a Norwegian company Hoegh LNG in connection with a long-term lease agreement for a floating LNG storage unit, which was signed with AB Klaipėdos nafta last week. The transaction is regarded to be Lithuania’s fundamental achievement in the energy sector since Būtingė terminal construction.
According to Managing Director of AB Klaipėdos nafta Rokas Masiulis, the floating LNG storage unit will contribute to a reduction of Lithuania’s dependency on a single gas supplier and open up the opportunity to purchase gas on market terms. Current plans are that terminal capacity will range from 2 billion cubic metres to 3 billion cubic metres of gas, which is similar to Lithuania’s normal gas consumption volume. It is expected that 1 billion cubic metres of gas will be imported through the terminal right in the first year.
The firm’s Managing Partner Dr Irmantas Norkus and Managing Associate Aušrys Šliavas advised Hoegh LNG in this project on public procurement matters and other aspects of Lithuanian law, assisted the company in negotiations over the long-term lease agreement and advised it on the establishment of a local Hoegh LNG company in Lithuania.