Commission decision finding aid to Litgas LNG terminal compatible with State aid rules published in the OJ
The Commission has published in the Official Journal (OJ) the decision to find aid to maintain the LNG terminal, which Lithuania implemented for Litgas during the period 2016-2018, compatible with the internal market.
On 20 November 2013, the Commission approved State aid for the construction and operation of the LNG terminal in Klaipeda. On 2016, Lithuania amended the scheme, entrusting Litgas with a service of general economic interest (SGEI) for the supply of “LNG Mandatory Quantity” necessary to keep the terminal operational and introducing compensation through an LNG Supplement.
The amendments entered into force on 1 January 2016, before being notified to the Commission. In a decision adopted on 31 October 2018, the Commission found that the amendments constituted unlawfully implemented State aid, but that the aid was compatible with the internal market.
On 8 September 2021, the General Court partially annulled the 2018 Commission decision insofar as it concerned the 2016 amendments, finding that the Commission should have opened a formal investigation, in particular regarding the compensation of Litgas’ boil-off and balancing costs. The Commission subsequently opened an in-depth investigation in December 2022.
Following its investigation, the Commission has confirmed that Lithuania unlawfully implemented the aid granted to Litgas between 2016 and 2018 in breach of Article 108(3) TFEU, but concluded that the measure is compatible with the internal market under Article 106 TFEU and the 2012 SGEI Framework.
The decision is available under case number SA.44678 in the State aid register, and in the OJ.