All agreed loans

Lithuania. Amber Grid AB

Date of loan: 19 Aug 2015
Country: Lithuania
Customer: Amber Grid AB
Amount in EUR: EUR 32 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The loan is provided for the construction of a gas transmission pipeline between the liquefied natural gas (LNG) terminal in Klaipeda and the town of Kursenai, Lithuania.

The project aims to diversify the sources of gas supply in the Baltic region and to create conditions that make it possible to utilise the full potential of the LNG terminal in Klaipeda while ensuring the security and reliability of supplies.

The gas transmission pipeline is 110 km long and 800 mm in diameter. The pipeline project includes installing nine line block valve sites, two intelligent in-line inspection tools and four cathodic protection stations.

The gas transmission pipeline is scheduled to be operational by the end of 2015.

Amber Grid AB is Lithuania’s national gas transmission system operator. The company provides natural gas transmission services for power plants, district heating plants and industrial companies.

Fulfilment of NIB's mandate

The new Klaipeda–Kursenai pipeline will contribute to the diversification of gas sources and routes in the Baltic region while increasing security of gas supply. Since production and transportation costs of regasified liquid natural gas are higher than those of pipeline gas, there is a risk that commercial and non-regulated demand for LNG could be lower than predicted. However, should regasified gas from the LNG terminal become an economically viable product, the pipeline connection will support the integration and efficiency of the Baltic gas markets.

Sustainability summary

This is a project with a potentially extensive environmental and/or social impact (category A, read more)

The highest risk of a negative environmental impact will occur during the construction phase, as the pipeline will be dug underground using open excavation methods. The pipeline passes through six protected areas and parts of the European Natura 2000 special conservation area network, one being where it also crosses the river Minija.

The original plan to tunnel under the riverbed of the Minija had to be abandoned due to unfavourable geological conditions. The work will therefore be performed by open excavation. To comply with NIB’s policy requirements, the loan client have implemented diligent monitoring and mitigation actions in order to reduce the risks to an acceptable level.

With the exception of laying the pipeline across the river Minija, NIB deems the risk of negative impact on the protected areas to be limited.