Klaipedos Nafta AB Concludes Contract for Natural Gas Pipeline System Engineering, Procurement and Construction Works

Klaipedos Nafta AB (KN) announced that it has concluded the contract for natural gas pipeline system engineering, procurement and construction works with German concern PPS Pipeline Systems GmbH, the winner of the procurement of engineering and construction works for natural gas pipeline system. Under the contract of the natural gas pipeline system engineering, procurement and construction works, necessary in constructing the connection between the liquefied natural gas terminal’s jetty within the water area of the Klaipeda State Sea Port, near the northern part of the Kiaules Nugara island, and the Lithuanian natural gas transportation system, gas pipeline Jurbarkas-Klaipeda, section Taurage-Klaipeda, near Klaipeda DSS-2, gas distribution station, by Kiskenu village, Dovilu sub-district, Klaipeda district municipality, will be executed. The total fixed price for all works shall be LTL 94,840,000, value-added tax excluded, and LTL 114,756,400, value-added tax included. The rate of the value-added tax on the day of the conclusion of the contract equals 21%. All the works under the contract shall be finished until August 1, 2014. The contract shall enter into force upon the approval of the General Meeting of Shareholders of KN, as provided for in Article 16.10 of the Articles of Association of KN. On April 22, 2013, the Board of KN approved the conclusion of the contract.