The European Investment Bank (EIB) is providing a loan of EUR87m to Klaipedos Nafta to build and operate a new liquefied natural gas (LNG) import facility in the port of Klaipeda, Lithuania.

Klaipedos Nafta’s LNG project is expected to diversify and secure Lithuania’s energy supply, as well as provide backup in case of gas supply failures.

The LNG terminal has a floating storage and regasification vessel (leased by Klaipedos Nafta), an offshore jetty, including gas handling facilities and an 18km pipeline connection to the Lithuanian gas grid.

European Investment Bank vice president Pim van Ballekom said the bank promotes security and diversification of energy supply.

"We therefore particularly welcome this agreement with Klaipedos Nafta, as the project will ensure the sustained supply of a key source of energy and will increase competition in Lithuania," Ballekom added.

Klaipedos Nafta CEO Rokas Masiulis said, "This long-term loan will be the backbone of the LNG terminal’s project financing and will ensure that the project will be completed in a timely fashion."

The project is scheduled for completion by the end of 2014.