Liquefied Natural Gas Terminal in Lithuania 2011 m. balandžio 6 d. Liquefied Natural Gas Terminal in Lithuania May, 2013

LNG Terminal Project - Background The necessity to have an alternative energy source appear: Following EU requirement (S994/2010 ES ) to ensure alternative gas supply from 3rd December 2014 – to secure an alternative gas supply source, After shutdown of Ignalina Nuclear Power Plant on 31 December 2009, Lithuania had became even more dependent on natural gas import, As an outcome of above gas is being supplied to the country by single pipeline from Russia (Gazprom) through the Republic of Belarus, Klaipėdos Nafta

LNG Terminal Project - Background Major objectives of the National Energy Strategy of Lithuania assigned to LNG terminal: Supply of natural gas will be diversified and the country will not be dependent on a single gas supplier, Lithuania on its own will be able to cover emergency demand for natural gas. The country will gain access to international gas markets. Preconditions to form both national and regional gas markets in Lithuania will be created with the possibility in the future to supply gas to neighboring countries. LNG terminal will start operation on December 2014. Klaipėdos Nafta

LNG terminal infrastructure scope Jetty High pressure gas pipelines High pressure loading arm FSRU LNG carrier 18 km Gas metering station Floating Storage and Regasification Unit (FSRU) LNG storage capacity: 170.000 m3 Regasification capacity: ~11 mmcm/day Leased from Höegh LNG for 10 years with a purchase option Jetty Offshore jetty facility located in the southern part of the Port of Klaipėda Gas pipelines 18 km long and 700 mm wide gas pipeline that connects FSRU to the gas grid; Includes 3 km of horizontal directional drilling under the lagoon Klaipėdos Nafta 4

Baltic sea Jetty and FSRU Pig’s Back island Gas pipeline 5

LNG Project Plan Klaipėdos Nafta 6 2011 2012 2013 2014 2015 Laying of Pipeline Jurbarkas – Klaipėda (Lietuvos Dujos) EIA screening, technical design of dredging area Port Dredging (Klaipeda Port Authority) Pre permitting 18 months Concept of LNG terminal, “Expansion plan, SEA Pre application 11 months EIA scoping: public consultations, transboundary procedures EIA: public consultations, approval Environmental operational permit according directive 2008/1/EB requirements Territory Planning, (Public consultations, negotiations with land owners, Right of the way for pipeline, jetty area) Risk and Safety Assessment, QRA, 1 issue of Safety report according Seveso Finalizing Safety report according Seveso II permitting 12 months Pre-Project Study of Pipeline Pipeline EPC procurement Pipeline Detail Design Construction permit Pipeline construction Pre-Project Study of Jetty Jetty EPC procurement Jetty Detail Design, Construction permit Jetty construction Procurement of FSRU Vessel Commissioning Works of TERMINAL State commission Construction of FSRU Vessel and Delivery to Klaipėda Port LNG Procurement Conception, receipt of permits, safety and navigation issues, project management, construction supervision (Lead Advisor) Klaipėdos Nafta 6

LNG Project permitting Plan (Pre-permitting, 18 month) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) In July of 2010 Government of Lithuania by resolution appointed “Klaipedos nafta” to implement LNG terminal project; In November of 2010 Interdepartmental Working group formed by the order of Minister of Energy issued concept of LNG terminal. In May of 2011 “Klaipedos nafta” started “Expansion plan” and Strategic environmental assessment (SEA) of LNG project: Official announcement for public was issued; 3 alternative locations were selected for LNG terminal; Presentation of LNG terminal concept and scoping of SEA with 18 authorities and institutions; Klaipėdos Nafta

LNG Project permitting Plan (Pre-permitting, 18 month) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) In September of 2011 “Expansion plan” and SEA reports were issued: The main parameters of LNG terminal were defined; Environmental and social economic aspects were investigated (air, water, coastal issues, flora, fauna, soil, geology, landscape, protected areas, public health, cultural heritages sites, land usage); Navigation study and Concept risk assessment report were prepared; LNG terminal plan was coordinated with port future expansion study; 2 locations of LNG terminal for further investigation were recommended; Pipeline routes were defined; Detail project implementation schedule was prepared; In October public consultation in 2 municipalities were held; In November coordination of Expansion plan and SEA report with authorities and institutions; In December “Expansion plan” was approved by ministry of Energy; Klaipėdos Nafta

LNG Project permitting Plan (Pre-application, 11 months) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) EIA scoping (4 month): Preparation of the EIA program (November – December 2011); Publicity measures for the EIA program, December 2011; Notification submission to the republic of Latvia, January 2012; Obtaining agreements on EIA program from authorities, January- February 2012; Obtaining agreement on EIA program from Competent authority, February 2012; Klaipėdos Nafta

LNG Project permitting Plan (Pre-application, 11 months) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) EIA report (6 months): Pre-project study of the pipeline, December 2011 – March 2012; Pre-project study of the Jetty, October 2011 – March 2012; Contract with Hoegh LNG, detail design and parameters of the FSRU, March 2012; Risk assessment input to EIA report from Safety report according Seveso II requirements (quantitative risk assessment, safety zones, HAZID, risk management plan, ship collision analysis), December 2011 – April 2012; Preparation of EIA report, December 2011 – May 2012; Publicity of EIA report and submission of the report to the republic of Latvia, June 2012; Klaipėdos Nafta

LNG Project permitting Plan (Pre-application, 11 months) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) Public hearings, 4 municipalities, June 2012; EIA report public consultations in Latvia, 1 municipality, July 2012; Obtaining agreements from authorities, August - September 2012; Transboundary consultations with the republic of Latvia under the Espoo Convention regarding EIA report in Vilnius, September 2012 Obtaining agreement on EIA report from competent authority and adoption of decision on EIA alternatives, end of October 2012 Total pre-application period: 11 months Klaipėdos Nafta

LNG Project permitting Plan (Permitting - 12 months) New Regulation for trans-European energy infrastructure (TEN-E Guidelines) Territory planning and permit of construction: Report of special plan, December 2012; Financial offers for land owners, January 2013; Public consultations (2 municipalities) of special plan report, March 2013; Obtaining agreement on Special plan report from authorities, April – May 2013; Negotiation with land owners, agreement on right of the way, February June 2013; Approval of special plan by the ministry of Energy, June 2013; Administrate act for the right of the way, July 2013; Application for construction permit, August 2013; Obtaining construction permit, October – November 2013 Total permitting period - 12 months Total pre-application and permitting period - 23 months (TEN-E: 42 months) Total pre-permitting, pre-application and permitting period - 41 months Klaipėdos Nafta

A “one-stop-shop” approach for permitting; Advantages of Streamlining Environmental Assessments of Projects of Common Interest (PCIs) A “one-stop-shop” approach for permitting; Pre-application and Permitting periods have time limit; More precise planning of PCIs and avoid delays in schedule; Clear procedures and sequence of permitting; A transparent process of public consultation and stakeholders. Klaipėdos Nafta

Thank you Klaipėdos Nafta