REGULATIONS FOR USE OF THE LIQUEFIED NATURAL GAS … · FSRU Owner – company HÖEGH LNG Klaipeda,...

APPROVED by order No. BV-58 of the Director General of SC Klaipedos Nafta On April 18th, 2014 NEW EDITION Approved by order No. BV-113 On June 15th, 2015

REGULATIONS FOR USE OF THE LIQUEFIED NATURAL GAS TERMINAL

DRAFT

Disclaimer

The translation of Regulations for Use of the Liquefied Natural Gas Terminal and its annexes is not binding and is provided by LNG terminal operator SC Klaipedos Nafta exclusively for information purposes. SC Klaipedos Nafta disclaims any warranty of any kind as to the accuracy and completeness of the present translation, the original version in Lithuanian being the sole and unique reference for the execution of the contract and that would in any case prevail over any translated version. SC Klaipedos Nafta reserves the right to update the translation at any time as deemed necessary by SC Klaipedps Nafta to improve and/ or adjust the quality and/ or content of the translation submitted and available on SC Klaipedos Nafta website. The LNG terminal user is free to use the translated document at its own risk and under its own responsibility, and remains liable to check the latest version available on the website for this purpose. In addition to the translation proposed by SC Klaipedos Nafta, the LNG terminal user may use at its own risk and costs, other translated documentation if deemed necessary by the SC Klaipedos Nafta with the understanding that in any event a translation would not be taken into consideration if a discrepancy were to arise between the translated and the Lithuanian versions.

REGULATIONS FOR USE OF THE LIQUEFIED NATURAL GAS TERMINAL SC Klaipedos Nafta, 2016

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Table of Contents

List of Annexes ................................................................................................................................. 3

1. General Provisions................................................................................................................. 4

2. Definitions ............................................................................................................................... 4

3. Terminal's Technical Characteristics and Services Provided ........................................... 9

4. Terminal’s Capacities and Their Allocation ...................................................................... 10

4.1. Description of Capacities ....................................................................................................... 10

4.2. Principles of Capacities Allocation ......................................................................................... 11

4.3. Requirements to Terminal Users ........................................................................................... 11

4.4. Submission and Consideration of Terminal Capacity Allocation Requests ........................... 12

4.5. Conclusion of the Contracts ................................................................................................... 15

5. Management of Unused Terminal Capacities ................................................................... 15

5.1. Transfer of Terminal Capacities on the Secondary Market .................................................... 15

5.2. Terminal Congestion Management ........................................................................................ 16

6. Compilation of Terminal Use Schedules ........................................................................... 17

6.1. Annual Schedule .................................................................................................................... 17

6.2. Monthly Schedule ................................................................................................................... 21

7. Terms and Conditions of Terminal Use ............................................................................. 23

7.1. LNG Carrier Approval Procedure ........................................................................................... 23

7.2. Arrival of an LNG Carrier ........................................................................................................ 23

7.3. Procedure of LNG Load and LNG Reload ............................................................................. 25

7.4. Procedure of Joint Terminal Use ............................................................................................ 26

7.5. Requirements to Quality of LNG, Quality and Quantity determination .................................. 27

7.6. Performance of LNG Load, LNG Regasification and LNG Reload ........................................ 29

7.7. Mandatory Switching of Service Provision Mode ................................................................... 30

7.8. Price of Terminal Services ..................................................................................................... 31

7.9. Security of Terminal User's Obligations Fulfilment ................................................................ 31

7.10. Limitations or Termination of Terminal Services Provision .................................................... 34

7.11. Maintenance Works ................................................................................................................ 35

7.12. Force Majeure ........................................................................................................................ 36

8. Liability .................................................................................................................................. 36

9. Information Exchange.......................................................................................................... 38

9.1. Operational Cooperation ........................................................................................................ 38

9.2. Confidentiality ......................................................................................................................... 39

10. Final Provisions .................................................................................................................... 39


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List of Annexes

Annex No. 1 Inter-Use Terminal Contract

Annex No. 2 Natural Gas Accounting Policy of SC Klaipedos Nafta

Annex No. 3 Operator's Technical Conditions

Annex No. 4 Request for Allocation of Terminal Capacities

Annex No. 5 Request for Preliminary Services Schedule

Annex No. 6 Liquefied Natural Gas Terminal User’s Contract

Annex No. 7 List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and

Obligation Security Values

Annex No. 8 Bank Guarantee Form to Secure the Validity of the Proposal

Annex No. 9 Agreement of Transfer of Unused Liquefied Natural Gas Terminal Capacities

Annex No. 10 Annual Schedule Request for Allocation of Terminal Capacities

Annex No. 11 Monthly Schedule Request for Allocation of Terminal Capacities

Annex No. 12 Day Nomination for LNG Regasification

Annex No. 13 Bank Guarantee Form to Secure Fulfillment of Terminal User’s Obligations

Annex No. 14 Form of Guarantee of Parent Company and/ or Group of Companies to Secure the

Fulfillment of Terminal User’s Obligations

Annex No. 15 LNG Loading or LNG Reloading Nomination

Annex No. 16 Cargo Measurement Procedure


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REGULATIONS FOR USE OF LIQUEFIED NATURAL GAS TERMINAL

1. General Provisions

1. Regulations for Use of Liquefied Natural Gas Terminal (hereinafter, the Regulations) establish the procedure and terms of use of liquefied natural gas terminal (hereinafter, the Terminal) of SC Klaipedos Nafta (hereinafter, the Operator), requirements for persons intending to use the Terminal, their rights, obligations and liability as well as other special requirements related to operation of the Terminal and its use for delivery and unloading of liquefied natural gas (hereinafter, LNG) to the Terminal, its regasification and/ or reloading onto an LNG Carrier.

2. The Regulations are developed following the provisions of the Law on Liquefied Natural Gas Terminal of the Republic of Lithuania, Law on Natural Gas of the Republic of Lithuania, Regulation (EC) No. 715/2009 of the European Parliament and of the Council on conditions for access to the natural gas transmission networks dated of 13 July 2009, repealing Regulation (EC) No. 1775/2005 (OL 2009 L 211, p. 36) (hereinafter, the Regulation), Description of Natural Gas Supply Diversification Procedure as approved by decree No. 1354 of the Government of the Republic of Lithuania dated 7 November 2012 (hereinafter, the Description), the Requirements towards Regulations for Use of Liquefied Natural Gas Terminal, approved by decree No. O3-433 of the National Commission for Energy Control and Prices (hereinafter, the Commission) dated 21 December 2012 (hereinafter, the Requirements) and the Allowed Loss calculation description at the Liquefied Natural Gas Terminal, approved by the Energy Minister of the Republic of Lithuania by decree No. 1-160 dated 18 June 2014.

3. The Regulations are developed and applied following the general principles of transparency and publicity, non-discrimination of Terminal Users, good faith, Terminal safety and reliability, clarity and specificity as well as technical and economic efficiency of the Terminal operation.

4. The Regulations are obligatory for the Operator and Terminal Users as well as for other persons, who intend to become the Terminal Users according to the procedure set forth in the legal acts and Regulations. Respective persons shall provide a written confirmation of their agreement with all the provisions of the Regulations and undertake to observe the Regulations prior to commencing any actions governed by the Regulations. In any event said persons agree with all conditions of the Regulations and undertake to observe them in performing actions envisaged by the Regulations or otherwise participating in procedures envisaged by the Regulations.

2. Definitions

5. The following definitions are used in the Regulations (including annexes):

5.1. Agent – a person agreed in advance by Terminal User with Operator to handle an LNG Carrier at the Port and/ or to represent LNG Carrier’s owner.

5.2. Allowable Loss Norm – maximum allowable natural gas loss in the Terminal as specified in the legal acts of the Republic of Lithuania and derived from the Allowable Consumption Norm for Technological Needs and Allowable Measurement Uncertainty Norm as defined in the Operator's Natural Gas Accounting Policy (Annex No. 2 to the Regulations).

5.3. Annual Schedule – Service Schedule for a Gas Year.

5.4. Applicant – a person complying with the requirements applied to the Terminal User set forth in the legal acts and seeking to obtain requested Terminal Capacities.

5.5. Arrival Period – a period of time assigned to an LNG Carrier to arrive at the Port.

5.6. Bank Guarantee – irrevocable first demand unconditional non-renewable guarantee which secures Terminal User's obligations, arising from implementation of the LNG Terminal User's Contract, issued by a crediting institution, which has a credit rating not less than the Minimum Credit Rating or belongs to a Parent Company and/ or group of


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companies holding such a rating, and provided to the Operator in the form approved by the Operator.

5.7. Cargo – transported, delivered, or reloaded amount of LNG lying in an LNG Carrier or in the Terminal.

5.8. Physical Cargo Storage – LNG storage in the Terminal starting from completion of unloading of the Cargo into the Terminal of specific Terminal User until complete withdrawal of the Cargo from the Terminal through its reloading or regasification by Joint Terminal Use including all Terminal Users’ Natural Gas Losses.

5.9. Virtual Cargo Storage - LNG storage in the Terminal starting from completion of unloading of the Cargo into the Terminal of specific Terminal User until complete withdrawal of the LNG quantity equivalent to Cargo size from the Terminal through its reloading or regasification by such Terminal User, including Terminal User's Natural Gas Loss. In cases when the Terminal User has completed the said withdrawal of the Cargo or has not yet delivered a Cargo into the Terminal and is using Terminal Services, the Virtual Cargo Storage period shall commence from the date of the use of such Services until the delivery of a Cargo(s) equivalent to the quantity of LNG used for provision of the Services including Natural Gas Losses of such Terminal User. Virtual Cargo Storage Period for a single Cargo may not last longer than a calendar year.

5.10. Creditworthiness Requirements – a requirement set forth in the Regulations for the Terminal User to have not less than the Minimum Credit Rating or for its Parent Company and/ or group of companies to have not less than the Minimum Credit Rating and to provide a guarantee, compliant with the form established by the Operator, securing fulfillment of the Terminal User's obligations under the Regulations and Terminal User Contract or for the Terminal User to provide a Bank's Guarantee securing fulfillment of the Terminal User's obligations under the Regulations and Terminal User Contract.

5.11. Designated Supplier – a natural gas supply company committed and designated under relevant Lithuanian legislation to ensure the supply of the minimum quantity necessary to ensure the maintenance of a stable regasification technological process at LNG terminal or maintenance of technical condition of LNG terminal which if required enables to commence regasification after the regasification process of the LNG Terminal was temporarily not performed and to supply natural gas meeting natural gas quality requirements set in the legal acts of the Republic of Lithuania to the Transmission System.

5.12. Electronic Terminal Service Scheduling and Administration System (ETSSAS) – an information system administered by the Operator, using which the Operator and Terminal Users can exchange information regarding Terminal service scheduling, nomination arrangement, can provide operational information about services provided, LNG remainder, lent and returned LNG quantity, gas quality and other relevant information, upon submission of a request by the Terminal User to the Operator to gain access to the system and by making an ETSSAS usage contract by an electronic form.

5.13. Expert – an independent inspector hired for witnessing of Cargo quantity and quality by mutual agreement between the Terminal User and LNG Seller, coordinated with the Operator in writing.

5.14. Floating Storage and Regasification Unit (hereinafter, FSRU) – floating liquefied natural gas storage with a regasification facility.

5.15. Free Capacities – unallocated Terminal Capacities which can be ordered by an Applicant in accordance with conditions and procedure set forth under the Regulations.

5.16. FSRU Owner – company HÖEGH LNG Klaipeda, UAB including its legal representatives and successors of the rights according to the FSRU Time Charter Party concluded with Operator.

5.17. Gas Day – a period of time beginning every day at 07:00 AM and ending the next day at 07:00 AM (from 05:00 UTC to 05:00 UTC).


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5.18. Gas Year – a period beginning on the first day of Terminal operation1, as announced by the Operator on its internet website, and ending on 1 October 2015 while the period for each subsequent year commences on 1 October and ends on 1 October next year.

5.19. Inter-Use Terminal Contract – a contract between the Operator and all Terminal Users determining legal conditions for Joint Terminal Use as specified in section 7.4 of the Regulations with its form attached to the Regulations as Annex No. 1.

5.20. Inter-User – a Terminal User, who has entered into an Inter-Use Terminal Contract, and respectively lends own delivered LNG or borrows LNG delivered by other Terminal User according to the terms set forth in the Regulations, so that Cargoes of all Terminal Users can be accepted, regasified and/ or reloaded at the Terminal.

5.21. Invitation – an invitation, publicly announced on the Operator's internet website, inviting to submit Requests for Allocation of Terminal Capacities upon initiation of the annual Terminal Capacities Allocation Procedure.

5.22. Joint Terminal Schedule – a joint Terminal User Service Schedule of respective period, resulting from joining together respective Service Schedules of Terminal Users.

5.23. Joint Terminal Use – use of the Terminal Capacities when they are simultaneously used by more than one Terminal User as specified in section 7.4 of the Regulations.

5.24. List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values – a list of fees (rates) for Terminal Services and penalties applied by the Operator published on the Operators internet website (Annex No. 7 to the Regulations).

5.25. LNG Borrower – an Inter-User who borrows LNG from another Inter-User (LNG Lender) in accordance with the procedure set forth under the Regulations.

5.26. LNG Carrier – a ship designated for LNG transportation.

5.27. LNG Lender – an Inter-User who lends LNG belonging to it by the right of ownership to another Inter-User (LNG Borrower) in accordance with the procedure set forth under the Regulations.

5.28. LNG Load – Cargo unloading into the Terminal from an LNG Carrier complying with Terminal's Technical Requirements.

5.29. LNG Quality – requirements applied to liquefied and natural gas established under the legal acts of the Republic of Lithuania.

5.30. LNG Regasification – the process of Cargo regasification at the Terminal during which LNG is converted from liquid to gaseous state at a rate which cannot be less than the Minimum LNG Regasification Rate and cannot be greater than Maximum LNG Regasification Rate as specified in clause 10 of the Regulations and regasified natural gas is delivered to the Transmission System's entry point next to the Terminal gas metering station.

5.31. LNG Regasification Capacities – amount of natural gas which is regasified using the LNG regasification Service in accordance with conditions specified in clause 12 of the Regulations.

5.32. LNG Regasification Service – as it is defined in clause 12 of the Regulations.

5.33. LNG Reload – Cargo unloading from the Terminal into an LNG Carrier complying with Terminal's Technical Requirements.

5.34. LNG Reloading Capacities – amount of natural gas which is reloaded using the LNG Reloading Service in accordance with conditions specified in clause 13 of the Regulations.

1 For the purposes of implementation of provisions of part 9 to article 11 of the Law on Liquefied Natural Gas Terminal of the Republic of Lithuania, operation of the LNG Terminal is held to begin on commencement of the first period of use of allocated LNG Terminal Capacities as publicly announced by the Operator.


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5.35. LNG Reloading Service – as it is defined in clause 13 of the Regulations.

5.36. LNG Seller – a person holding LNG and undertaking LNG supply (sale) activities, supplying (selling) or intending to supply (sell) LNG to a Terminal User.

5.37. Loading Certificate – quality and quantity certificates issued by a competent person at the port of loading for the Cargo loaded into the LNG Carrier.

5.38. Loading Period – a period specified in the Regulations and counted from connection of flexible LNG loading hoses to an LNG Carrier until their disconnection upon the loading completion during which the Operator undertakes to apply all reasonable efforts to unload the Cargo from an LNG Carrier into the Terminal.

5.39. Loanable Amount of LNG – amount of LNG including LNG consumed for technological needs which is automatically assigned for lending by an LNG Lender to an LNG Borrower in accordance with an approved Service Schedule of a Terminal User.

5.40. Maintenance – any activities aimed at maintenance, restoration, and/ or improvement of the Terminal's and/ or Transmission System's functionality, during which no Terminal Services are provided at all or their provision is limited.

5.41. Minimum Credit Rating – primary unsecured long-term obligation rating that is higher or equivalent to (a) BBB- if evaluated by Standard & Poor‘s Rating Services, (b) Baa3 if evaluated by Moody’s Investors Services Limited, or (c) BBB- if evaluated by Fitch Ratings Inc. or a rating not lower than those specified above assigned by another certified institution officially assigning financial capacity ratings to economic entities.

5.42. Monthly Schedule – Service Schedule for a month of a Gas Year.

5.43. Notice of Readiness – a notification received from an LNG Carrier's master about LNG Carrier’s arrival at the Port and its readiness for Cargo loading.

5.44. Operator – SC Klaipedos Nafta also referred to as the Project Implementation Company.

5.45. Operator's Natural Gas Loss – natural gas loss occurring in the Terminal in excess of the Allowable Loss Norm calculated in accordance with the Operator's Natural Gas Accounting Policy (Annex No. 2 to the Regulations).

5.46. Operator's Technical Conditions – Annex No. 3 to the Regulations.

5.47. Outturn Certificate – a document confirming the amount of LNG unloaded from an LNG Carrier to the Terminal calculated according to the procedure and terms set forth in the Regulations.

5.48. Parent Company – as it is defined in the Law on Joint Stock Companies of the Republic of Lithuania.

5.49. Port – Klaipeda State Seaport.

5.50. Port Manager – State Enterprise Klaipeda State Seaport Authority.

5.51. Primary Market – capacities allocated according to conditions of Terminal Capacities Allocation Procedure.

5.52. Regasification – conversion of a respective amount of LNG into gaseous state.

5.53. Reloading Period – a period specified in the Regulations and counted from connection of flexible LNG loading hoses to an LNG Carrier until their disconnection upon the reloading completion during which the Operator undertakes to apply all reasonable efforts to reload the Cargo and/ or its part from the Terminal into the LNG Carrier.

5.54. Request – Request for Allocation of Terminal Capacities (Annex No. 4 of the Regulations) filled by an Applicant in accordance with the form established by the Operator wherein the Applicant confirms its compliance with the requirements applied to the Terminal User set forth in the Regulations and legal acts and undertakes to obtain requested Terminal Capacities should they be allocated to it.

5.55. Request for Preliminary Services Schedule – the schedule submitted by the Applicant during the Annual Terminal Capacities Allocation Procedure, which specifies the Terminal


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Capacities, requested to be obtained by the Applicant, as described in clause 28.5 of the Regulations, and the application form of which is attached as Regulations Annex No. 5.

5.56. Returnable Amount of LNG – Borrowed LNG amount to be returned by an LNG Borrower to an LNG Lender.

5.57. Secondary Market – Process of transferring of Terminal User’s Unused Capacities taking place in accordance with the procedure and conditions set forth in section 5.1 of the Regulations.

5.58. Service Schedule – Joint Terminal's and/ or Terminal User's Annual or Monthly Schedule of LNG Regasification and/ or LNG reloading and Arrival Periods, based on which the Operator provides services over a respective period of time with regard to service provision conditions specified in clauses 12 and 13 of the Regulations and Terminal's Technical Characteristics according to clause 10 of the Regulations.

5.59. Ship/Shore Safety Checklist (SSSC) – coordination of compliance with technical and safety requirements of an LNG Carrier and Terminal, carried out before LNG unloading and reloading.

5.60. Slot – time period dedicated for arrival of the Carrier and realization of the Cargo within the planned Gas Year which is applied for annual scheduling purposes as set forth under section 6.1 of the Regulations.

5.61. Terminal – entirety of engineering structures and facilities including the FSRU through which LNG is imported into the Republic of Lithuania and through which additional Terminal services described in the Regulations are provided.

5.62. Terminal Capacities – Terminal's LNG Reload and LNG Regasification Capacities limited by the Terminal's Technological Capacity. Terminal Capacities are allocated for Terminal Users in accordance with the procedure and conditions set forth in the Regulations and Description. Terminal Capacities consist of:

5.62.1. LNG Regasification Capacities as they are defined in clause 18.1 of the Regulations;

5.62.2. LNG Reloading Capacities as they are defined in clause 18.2 of the Regulations.

5.63. Terminal Capacities Allocation Procedure – procedure of allocation of respective Terminal Capacities according to conditions specified in section 4 “Terminal Capacities and Their Allocation” of the Regulations.

5.64. Terminal Congestion – a situation when the level of Terminal Capacities sought to be obtained at a given time exceeds the Terminal's Technological Capacity.

5.65. Terminal Services – LNG Regasification and/ or LNG Reload Services offered by the Operator, including other services as specified in clause 16 of the Regulations.

5.66. Terminal User – a person having entered into a Terminal User's Contract and Inter-User Terminal Contract to whom Terminal Capacities are or can be allocated in accordance with the procedure set forth in the Regulations.

5.67. Terminal User's Contract – a contract entered into by the Operator and Terminal User in regard of using the liquefied natural gas Terminal (Annex No. 6 to the Regulations). Regulations are an integral part of the Terminal User's Contract.

5.68. Terminal User's Natural Gas Loss – amount of LNG consumed for technological needs of the Terminal when Terminal is used by the Terminal User, calculated in accordance with the Operator's Natural Gas Accounting Policy (Annex No. 2 to the Regulations) and not exceeding the Allowable Loss Norm.

5.69. Terminal's Technological Capacity – maximum continuous Terminal Capacities that the Operator can offer to Terminal Users with regard to Terminal's Technical Characteristics, integrity, requirements for Terminal operation, and other factors.

5.70. Transmission System – Lithuanian natural gas transmission system, which is operated by the Transmission System Operator - SC Amber Grid.


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5.71. Unused Capacities – Terminal Capacities allocated to a Terminal User, which Terminal User does not intend to use and/ or does not use within the terms established in the Service Schedule.

6. Other terms used in the Regulations are to be understood as they are defined in the Law on Liquefied Natural Gas Terminal, Law on Natural Gas, Regulation, and Description.

3. Terminal's Technical Characteristics and Services Provided

7. The Terminal is situated in the southern part of the Klaipeda State Seaport next to Kiaules Nugara isle. The Terminal's geographic coordinates according to Greenwich are 55º39‘50‘‘N and 21º08‘30‘‘E.

8. The Terminal is connected to the Transmission System.

9. The right to use the Terminal is granted in accordance with the Terminal's Technical Characteristics.

10. Main Terminal's Technical Characteristics:

Terminal's Technological Capacity (LNG Regasification and LNG Reload)

Up to 10,281,552 m3 of natural gas per day

Total capacity of LNG tanks 170,000 m3

Maximum LNG filling level 98 %, at 70kPag

Minimum operational LNG heel level 3,500 m3 of LNG

Maximum LNG Load rate 9,000 m3 of LNG/hour

Maximum LNG Reload rate 5,000 m3 of LNG/hour

Maximum LNG Regasification rate 428,398 m3 natural gas/hour

Nominal LNG Regasification rate 214,199 m3 natural gas/hour

Minimum LNG Regasification rate 57,089 m3 natural gas/hour

Maximum capacity of an LNG Carrier performing LNG Load, unless agreed otherwise

160,000 m3

Minimum capacity of an LNG Carrier performing LNG Load, unless agreed otherwise

65,000 m3

Maximum capacity of an LNG Carrier performing LNG Reload, unless agreed otherwise

65,000 m3

Minimum capacity of an LNG Carrier performing LNG Reload, unless agreed otherwise

5,000 m3

Note No.1 Terminal's Technical Characteristics are indicated at reference conditions: temperature (combustion/measurement) – 25/0 °C, pressure – 1.01325 bar. For planning purposes a 12.21 kWh/m3 upper calorific value of natural gas or another value forecasted by the Terminal Operator considering the data provided by the Terminal Users is used.

Note No.2 LNG Regasification Capacities cannot be higher than the maximum natural gas transmission capacities established by the Transmission System Operator at the point connecting the Terminal with the Transmission System.

Note No.3 Detailed Terminal's Technical Characteristics are provided in the Operator's Technical Conditions.

11. The Operator provides the LNG Regasification Service which is described in clause 12 of the Regulations and the LNG Reloading Service which is described in clause 13 of the Regulations.


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12. The LNG Regasification Service consists of the following related and mutually dependent services that are provided only under the conditions specified below:

12.1. LNG Load – when Cargo delivered within Arrival Period by LNG Carriers with capacity of minimum 65,000 m3 and maximum 160,000 m3, unless agreed otherwise, is unloaded into the Terminal over a Loading Period of not more than 48 (forty eight) hours.

12.2. Physical Cargo Storage and Virtual Cargo Storage at the Terminal.

12.3. LNG Regasification – Cargo regasification over a period of time necessary for Cargo regasification at a respective regasification rate that cannot be less than the minimum LNG Regasification rate and cannot be greater than maximum LNG Regasification rate as specified in clause 10 of the Regulations except in case of Maintenance, and, upon LNG Regasification completion, delivery of natural gas to the Transmission System's entry point next to the gas metering station.

13. The LNG Reloading Service consists of the following related and mutually dependent services that are provided only under the conditions specified below:

13.1. LNG Load – when Cargo delivered within Arrival Period by an LNG Carrier with capacity, of minimum 65,000 m3 and maximum 160,000 m3 unless agreed otherwise, is unloaded into the Terminal over a Loading Period of no more than 48 (forty eight) hours.

13.2. Physical Cargo Storage and Virtual Cargo Storage at the Terminal.

13.3. LNG Reload – Cargo reloading over a Reloading Period of not more than 48 (forty eight) hours into LNG Carriers arrived within Arrival Period, with capacity of minimum 5,000 m3 and maximum 65,000 m3 unless agreed otherwise.

14. The LNG Reloading Service is provided by the Operator upon determination that there is a demand for such service. The demand is determined with respect to the information about LNG Carriers for reloading operations provided by the Applicants in their Requests. Depending on necessary technical, legal and/ or commercial changes (for example, adjustment of the Terminal's infrastructure for small scale LNG Carriers) the Operator commences provision of the LNG Reloading Service not later than 7 (seven) months from the day of contracts, which stipulate LNG Reloading Services provision, conclusion with Terminal Users.

15. In order to ensure the possibility for several different Terminal Users to use the Terminal effectively, it is established that, in terms of usage of Terminal Capacities, several Terminal Users, which use the Terminal at the same time (Inter-Users) will be regarded as one gross Terminal User utilizing the Terminal in accordance with the conditions and procedures set forth under section 7.4 of the Regulations.

16. The Operator provides the Terminal Services specified in clause 11 and is not obliged to provide any other services that may become necessary for a Terminal User in order to be able to use Terminal Services, including, but not limited to, LNG Carrier agent services, tugs, pilots, vessel supplying with water, energy, fuel, and similar services. The Operator can also provide other services that are not envisaged in the Regulations if this does not affect other Terminal Users which are using the Terminal at the time of provision of such services or if they agree with provision of such services.

4. Terminal’s Capacities and Their Allocation

17. Terminal's Technical Characteristics specified in clause 10 of the Regulations determine the maximum scope of Terminal Services, which are supplied according to conditions specified in clauses 12 and 13 of the Regulations and are available on ideal conditions provided there are no limiting factors, including, but not limited to, Maintenance, weather conditions, etc., and make up the total Terminal's capacity.

4.1. Description of Capacities

18. The Operator enables Terminal Users to use the Terminal Services by allocating them the Terminal Capacities, which consist of:

18.1. LNG Regasification Capacities, which encompass a Terminal User's right and obligation to use the LNG Regasification Service at the required time period.


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18.2. LNG Reloading Capacities, which encompass a Terminal User's right and obligation to use the LNG Reloading Service at the required time period.

4.2. Principles of Capacities Allocation

19. Terminal Capacities obtained by a Terminal User gives him the right to use the Terminal Services to the extent of the Terminal Capacities allocated to such Terminal User. The right to use Terminal Services granted to the Terminal User by allocating him Terminal Capacities is implemented by Service Schedule coordinating, which takes place after the Terminal Capacities Allocation Procedure set forth in sections 6.1 - 6.2 of the Regulations. In order to avoid ambiguity Terminal Capacities can be used only after Service Schedules coordination in accordance with the procedure and conditions established under the Regulations.

20. If there's Terminal Congestion when allocating the Terminal Capacities, then one Terminal User can be granted with not more than 1/2 of all Terminal Capacities to be allocated.

21. The Operator allocates Terminal Capacities before the beginning of each Gas Year (annual Terminal capacity allocation procedure, performed according to sections 22 - 23 of the Regulations) and after ending the annual Terminal capacity allocation procedure (the procedure is performed according to sections 24 - 25 of the Regulations).

22. Available Free Capacities are allocated during the annual Terminal Capacities Allocation Procedure for a time period, regasification and/ or reloading LNG quantity requested by the Applicant. Not later than on the 25th of April of each year the Operator, while performing the annual Terminal Capacity Allocation Procedure, publishes an Invitation on its internet website wherein the Operator must specify:

22.1. The available Terminal Capacities in accordance with the types specified in clause 18 of the Regulations.

22.2. Total amount of the Terminal Capacities to be allocated.

22.3. Terminal Capacities allocation start and end dates, if such are determined.

22.4. Form and ways of the Requests submission.

22.5. Term for submission of the Requests which cannot be shorter than 30 (thirty) calendar days.

23. In case the annual Terminal Capacities Allocation Procedure does not take place, i.e. no Requests are received or no Terminal Capacities are allocated according to the received Requests, Operator can announce iterated Terminal Capacities Allocation Procedure(s) without regard to the term specified in the clause 22 of the Regulations.

24. Terminal Capacities are allocated by the Operator also after the annual Terminal Capacities Allocation Procedure when there are Free Capacities. The Operator continuously announces and updates the information about Terminal Capacities on offer on its internet website.

25. After the end of the annual Terminal Capacities Allocation Procedure, requests for Terminal Capacities allocation shall be submitted not later than 60 (sixty) calendar days before the use of requested Terminal Capacities is to commence. Requests can be submitted to other deadlines upon agreement between the Terminal User and Operator provided this does not violate the interests of other Terminal Users who use the Terminal at the time when requested Terminal Capacities are to be used or if other Terminal Users have expressed their agreement.

4.3. Requirements to Terminal Users

26. Applicants seeking to obtain Terminal Capacities shall meet the following requirements:

26.1. To hold a natural gas supply license if it is mandatory for performance of the activity for which respective Terminal Capacities are being obtained.

26.2. To have the LNG supply sources, justified by letters of intent, written confirmations of contractors and/ or equivalent evidences of LNG sales to the Applicant, the total amount of which is not less than the requested Terminal Capacities amount.

26.3. To have sufficient financial ability and/ or planned funding sources to cover the chain of LNG and/ or natural gas supply, including use of the Terminal Capacities.


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26.4. To meet other requirements to the Terminal User set forth under the legal acts, if such are stipulated.

27. The Operator has the right to specify in the Invitation that certain requirements to Terminal Users are not applicable depending on the type and/ or amount of the Terminal Capacities being allocated.

4.4. Submission and Consideration of Terminal Capacity Allocation Requests

28. The Applicant shall provide the Operator with the following documents along with the Request:

28.1. Copies of legal entity's registration certificate and articles of association (or other founding documents).

28.2. Copy of the natural gas supply license if it is mandatory for performance of the activity for which respective Terminal Capacities are being obtained.

28.3. Certified by Applicant Copies of letters of intent, written confirmations of contractors and/ or equivalent evidences of LNG delivery to the Terminal, signed by the Applicant and selected LNG Sellers.

28.4. Bank Guarantee to Secure the Validity of the Proposal in the form established by the Operator (Annex No. 8 to the Regulations) and issued for an amount of not less than calculated according to a respective formula on the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values (Annex No. 7 to the Regulations). This requirement is not applied to a Designated Supplier in the scope of Terminal Capacities which are assigned for Terminal’s obligatory quantity supply in pursuance of statutory duty established by the Law on Liquefied Natural Gas Terminal of the Republic of Lithuania.

28.5. Request for Preliminary Services Schedule (Annex No. 5 to the Regulations) (provided during the annual Terminal Capacity Allocation Procedure) specifying the requested Services provision dates, which later to be clarified in Service Schedules, exact annual and monthly amounts of LNG planned for LNG Regasification and/ or LNG Reload, and planned number of Cargoes or Monthly Schedules (Annex No. 11 to the Regulations) (provided during allocation of Terminal capacities after the annual Terminal Capacities Allocation Procedure) indicating exact amounts of LNG planned for LNG Regasification and/ or LNG Reload during the month.

28.6. A copy of consolidated financial statements of the Applicant or its Parent Company (if any) for the past 3 (three) years or the period since registration of the Applicant or its Parent Company (if the enterprise or its Parent Company has been undertaking activities for less than 3 (three) financial years).

29. The Request shall be submitted to the Operator in writing along with the documents specified in clause 28 of the Regulations (sent by fax, registered mail, courier service, or e-mail). In all cases the Applicant shall provide the Operator with the original of the document specified in clause 28.4 of the Regulations. If the Applicant re-submits Requests during another Terminal Capacities Allocation Procedure it can omit submitting the documents specified in clause 28 of the Regulations if said documents have already been submitted for an earlier Terminal Capacities Allocation Procedure provided the term of validity of the submitted documents has neither expired (if they have a term of validity) nor have the circumstances specified on corresponding documents changed.

30. Next working day after the deadline for submission of Requests specified in the Invitation or next working day after the day the Request was received, if Terminal capacities for current Gas Year are requested, the Operator evaluates the submitted Request and informs the Applicant submitting the Request if the Request meets the Request submission requirements as specified in the Regulations and Invitation. Having identified inconsistencies with the Requests submission requirements the Operator sets a reasonable term of not more than 3 (three) calendar days during which the Applicant has to correct the specified deficiencies. Requests for allocation of Terminal Capacities are considered and decisions are made not later than in 5 (five) calendar days (or on next working day after this period) after the deadline for submission of Requests specified in the Invitation or not later than 5 calendar days (or on the next working day after this period) after the deadline to correct deficiencies also not later than 5 (five) calendar days (or on the next working


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day after this period) after receiving the Request, if Terminal Capacities for current Gas Year are requested.

31. A Request for Allocation of the Terminal Capacities is rejected in the following cases:

31.1. Requested Preliminary Services Schedule or Monthly Schedules do not comply with the services providing conditions specified in clauses 12 and 13 of the Regulations and the Applicant has not corrected the deficiencies indicated by the Operator in accordance with clause 30 of the Regulations.

31.2. The Applicant does not meet the requirements specified in clauses 26.1 and 26.4 of the Regulations.

31.3. If there are justified doubts regarding compliance with the requirements specified in clauses 26.2 and 26.3 of the Regulations as well as in other cases when there are justified doubts whether the Applicant's activity can be compatible with continuous, appropriate, and safe operation of the Terminal or whether the Applicant is able and/ or willing to observe the obligations of Terminal User and/ or if the Applicant has not eliminated the Operator's doubts and/ or suspicions according to clause 30 of the Regulations.

31.4. When Request and/ or at least one of the documents, required in clause 28 is missing or submitted improperly and Applicant has failed to correct deficiencies specified by the Operator in accordance with clause 30 of the Regulations.

32. In each case the Operator shall, not later than on the next working day after making the decision to reject a Request for Allocation of Terminal Capacities, informs the Applicant and National Commission for Energy Control and Prices about the decision made and the reasons behind making it.

33. During the annual Terminal Capacities Allocation Procedure, Applicants' Requests are considered and the Terminal Capacities are allocated in the following order of priority:

33.1. Requests for Allocation of LNG Regasification Capacities.

33.2. Requests for Allocation of LNG Reloading Capacities.

34. If the total amount of respective Terminal Capacities sought to be obtained by all Applicants whose Requests have not been rejected does not exceed the Terminal Capacities being allocated according to the respective procedures, the Operator offers to all Applicants to obtain requested Terminal Capacities by entering into a Terminal User's Contract.

35. Allocation of the Terminal Capacities can mean allocation of the Terminal Capacities under conditions of Joint Terminal Use specified in section 7.4 of the Regulations.

36. If the Applicants whose Requests have not been rejected seek to obtain more than the Terminal Capacities available for the respective Gas Year, the Operator offers Terminal Capacities to the Applicants in accordance with the following order of priority:

36.1. Initially Terminal capacities are allocated to the Designated Supplier within the minimum quantity necessary to ensure the fulfillment of Terminal mandatory quantity supply obligation set by the legal acts.

36.2. Afterwards Terminal Capacities are allocated to Applicants seeking to obtain LNG Regasification Capacities whose average regasification rates (Vvid) are the greatest throughout the entire requested period (in months). Average regasification rate (Vvid) is calculated according to the following formula:

m

rvid

A

QV (kWh/month),

Where:

Qr – Amount sought to be regasified by the Terminal User throughout the entire requested period, (kWh).

Am – Period of Capacities reservation by the Terminal User (Gas Year months, in whole numbers, rounded up).


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36.3. If average regasification rates per month, calculated according to the formula in section 36.2 of the Regulations of several Applicants are equal, LNG Regasification Capacities are allocated to the Applicant who has requested LNG Regasification Capacities for a longer period, and if LNG Regasification Capacity time periods also are equal according to the “first-come-first-served” principle with respect to the time of submission of Requests and/ or their corrections according to respective requirements of the Regulations.

36.4. To Applicants seeking to obtain LNG Reloading Capacities who intend to reload the biggest amount of LNG throughout the entire requested period.

36.5. If several Applicants seek to reserve the same amount of LNG Reloading Capacities, LNG Reloading Capacities are provided to the Applicant who seeks to use capacities over the shortest period of time.

36.6. If several Applicants seek to reserve the same amount of LNG Reloading Capacities and use them over the same period of time, LNG Reloading Capacities are allocated according to the “first-come-first-served” principle with regard to the time of last submission of Requests and/ or their corrections according to respective requirements of the Regulations.

37. If the Applicants, to whom the Operator is ready to offer the Terminal Capacities, specify in the requested Preliminary Services Schedules or the Monthly schedules the amounts of LNG planned to be regasified and/ or reloaded during the first Gas Year that are not compatible with the Terminal's Technological Capacities, the Operator when making a decision regarding the Terminal Capacities Allocation, informs the Applicants accordingly.

38. Terminal Users having obtained Terminal Capacities for at least 2 (two) Gas Years, have the right to cancel no more than 50 (fifty) percent of Terminal Capacities allocated to them for the next Gas Year not later than the deadline for submission of the Requests for the Allocation of Terminal Capacities set for the current Gas Year. In this case, Operator shall not apply penalties for Unused Capacities in the scope of cancelled Terminal Capacities.

39. If Requests for Allocation of Terminal Capacities after the end of annual Terminal Capacities Allocation Procedure are submitted by more than one Applicant, whose Request has not been rejected seeking to obtain the same Terminal Capacities, Terminal Capacities are provided in accordance with the following order of priority:

39.1. Applicants seeking to obtain LNG Regasification Capacities for the largest amount of LNG and; if LNG amounts are equal – according to the “first-come-first-served” principle with regard to the time of submission of Requests and/ or their corrections according to respective requirements of the Regulations.

39.2. Applicants seeking to obtain LNG Reloading Capacities for the largest amount of LNG and, and if LNG amounts are equal – according to the “first-come-first-served” principle with regard to the time of submission of Requests and/ or their corrections according to corresponding requirements of the Regulations.

40. Use of Terminal Capacity allocated after the end of the annual Terminal Capacities Allocation Procedure is only possible with regard to the Annual Schedules approved by the Operator. Annual Schedules can be changed or adjusted only in accordance with the procedure and conditions set forth under the Regulations and if such changes are compatible with the Terminal's Technological Capacities and they do not affect the Arrival Periods specified in the Annual Schedules of Terminal Users, unless Terminal Users whose Annual Schedules would be changed give their consent.

41. If, after allocation of the Terminal Capacities according to clause 36 of the Regulations, there are unallocated capacities remaining according to the amount specified in Requests of Applicants, the Operator, following the procedure for consideration of Requests as set forth in clause 33 of the Regulations and considering the order of priority established for Terminal Users, offers the remaining available Terminal Capacities to the Terminal User who is the first in the order of priority and has not been provided with capacities. Not later than 3 (three) calendar days from such offer the Terminal User shall either accept or decline the amount offered by the Operator. Should such Terminal User decline or fail to submit its acceptance within the specified period of time, the Operator appropriately offers remaining available Terminal Capacities to the next


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Terminal User on the order of priority. In the circumstances established in this clause, Terminal Users, which obtain the remaining available Terminal Capacities, are required to sign the contracts with the Operator not later than till the end of the term, established by clause 42 of the Regulations.

4.5. Conclusion of the Contracts

42. Applicants whose Requests have been satisfied shall sign a Terminal User's Contract and Inter-Use Terminal Contract (hereinafter jointly referred to as “contracts”) based on drafts provided by the Operator and prepared according to forms of Annexes No. 6 and No. 1 to the Regulations and data provided on the Terminal User's Request and the documents filled along with it within 4 (four) calendar days from their submission. When the annual Terminal Capacities Allocation Procedure ends, contracts have to be signed not later than till the 7th of June of each year. Contract drafts are provided along with the Operator's decision regarding the Terminal Capacity allocation to Terminal Users. The Applicant has the right to refuse to sign the contract only in case he was not allocated with all of the Terminal Capacities specified in his Request in accordance with the procedure set forth under the Regulations. If the Applicant, except for the circumstances established under this clause, does not sign or submit to the Operator a signed Terminal User's Contract and/ or Inter-Use Terminal Contract by the deadline specified in this clause, such Applicant upon decision of the Operator loses its right to allocated Terminal Capacities and has to pay the Operator a penalty to the amount calculated according to a respective formula specified in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

43. Inter-Use Terminal Contract conditions and typical general conditions of a Terminal User's Contract are prepared, approved, and amended according to the procedure set forth in clause 208 of the Regulations.

44. If a Terminal User who is allocated with Terminal Capacities according to the procedure set forth under the Regulations already holds a valid contract with the Operator, the Operator draws up an additional agreement to Terminal User's Contract and submits it to the Applicant to be signed not later than 4 (four) calendar days from the decision regarding allocation of such Terminal Capacities to such Terminal User.

45. Upon agreement of the parties contracts are drawn up for definite period of validity. The period of validity of contracts shall correspond to the period of use of the Terminal Capacities allocated to the Terminal User. Contracts can be terminated before their term upon agreement of the parties or at the initiative of one of the parties on the grounds specified in the contracts.

5. Management of Unused Terminal Capacities

5.1. Transfer of Terminal Capacities on the Secondary Market

46. Terminal Users must use their allocated Terminal Capacities in accordance with the procedure and conditions set forth under the Regulations.

47. Terminal Users have the right to transfer Unused Capacities on the Secondary Market to other Terminal Users or persons meeting the requirements raised towards Terminal Users for a price no higher than the price paid for obtained the capacities. In this case Terminal Users are themselves responsible for transfer of Unused Capacities. Unused Capacities are transferred upon a decision made by the Terminal Users transferring the capacities with the Operator's consent in accordance with the requirements provided in this section of the Regulations. Transferring is only valid if the person to whom Unused Capacities are being transferred meets the requirements established towards Terminal Users in the Regulations.

48. If a Terminal User cannot itself find an entity willing to obtain Unused Capacities (all or their part) or if the Terminal User wishes for the Operator to organize and carry out the transferring of Unused Capacities, Terminal User informs the Operator accordingly.

49. Having received a request regarding organization of sale of Unused Capacities the Operator puts up an announcement about sale of capacities on the Secondary Market on its internet website. After announcement Unused Capacities are transferred to the Terminal User or person who meets the requirements raised towards Terminal Users and was the first to submit a written request to


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buy all Unused Capacities being sold (or part thereof). The request shall be submitted to the Operator and Terminal User selling the Unused Capacities.

50. Before obtaining Unused Capacities a Terminal User or another person shall submit documents specified in clause 28 of the Regulations. Existing Terminal Users can abstain from submitting documents specified in clause 28 of the Regulations if the term of validity of such documents has not expired (provided they have a term of validity) and no circumstances specified on respective documents have changed. The Operator decides whether it is possible to allocate Unused Capacities by applying requirements specified in section 4.4 of the Regulations, mutatis mutandis.

51. On the day specified in the trilateral agreement between the Operator, Terminal User transferring Unused Capacities, and Terminal User or another person obtaining Unused Capacities, the rights, obligations, and liabilities (including the amount specified in the Service Schedule) of the Terminal User transferring Unused Capacities are taken over by the Terminal User obtaining such Capacities while the Terminal User transferring Unused Capacities accordingly cedes the rights, obligations, and liabilities to the scope of transferred Terminal Capacities.

52. In all cases conditions of transfer of Unused Capacities are confirmed by the trilateral agreement between the Operator, Terminal User transferring Unused Capacities, and Terminal User or another person obtaining Unused Capacities (Annex No. 9 to the Regulations). Obtained Unused Capacities and their use conditions are also reflected in the contract of the Terminal User obtaining such capacities.

53. If Unused Capacities are not transferred in accordance with the procedure established under this section, the Terminal User who has obtained such Unused Capacities (or part thereof) on the Primary Market remains responsible for respective Unused Capacities.

54. The Operator has the right to levy a penalty against a Terminal User for Unused Capacities with the amount of said penalty calculated based on the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values. This requirement does not apply to the Designated Supplier within the scope of assigned, but unused Terminal Capacities, necessary to ensure the maintenance of a stable regasification technological process. Allowable Terminal's Capacity use deviation is provided in clause 62 of the Regulations. In case the Terminal User not later than 90 (ninety) calendar days prior to the beginning of the use of its Terminal Capacities informs Operator in writing about the non-use of such Terminal Capacities allocated to him, Operator has the right to apply a penalty to the value of 50 (fifty) percent of Unused Terminal Capacities, calculated on the basis of the relevant formula from the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security

Values. Penalties for Unused Monthly or Annual capacities are not summed up and non-usage of

Terminal Capacities does not eliminate the liability of Terminal User for the non-compliance with other terms of the Regulations (including section 6 of the Regulations) and liability against other Terminal Users for damages caused thereof.

5.2. Terminal Congestion Management

55. Should a Terminal User fail to use 20 (twenty) or more percent of Terminal Capacities obtained by the Terminal User counting those together over any period of 6 (six) months, the Operator has the right to unilaterally reduce the amount of Terminal Capacities obtained by the Terminal User for the current and all subsequent Gas Years by the unused amount of Terminal Capacities for each Gas Year. The Terminal Capacities can be reduced if there is Terminal Congestion, i.e. only if there are Applicants seeking to obtain more of the Terminal Capacities than available Terminal Capacities being allocated for the respective Gas Year. This condition is not applied to the Terminal User who is provided with more than 1/2 of all allocated Terminal's Capacities. Should such Terminal User fail to use 10 (ten) or more percent of Terminal Capacities obtained by the Terminal User counting those together over any period of 3 (three) months, the Operator has the right to unilaterally reduce the amount of Terminal Capacities obtained by the Terminal User for the current and/ or all subsequent Gas Years by the unused amount of Terminal Capacities for each Gas Year, after having considered evidence provided by such Terminal User regarding justified intent to use the allocated Terminal Capacities in the future (if this Terminal User provides them upon request of the Operator).

56. Immediately after making the respective decision to reduce the Terminal Capacities the Operator informs the Terminal User in writing of the decision to reduce the Terminal Capacities obtained by


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the Terminal User. Having reduced the Terminal Capacities the Operator assigns them to the unallocated Terminal Capacities which are allocated according to the procedure set in the Regulations.

57. Loss of the Terminal Capacities by the Terminal User, i.e. reduced Terminal Capacities, does not relieve the Terminal User from the obligation to pay for the Terminal Services under the same conditions as having fully used the Terminal's Capacities up to the moment of loss of the Terminal Capacities.

6. Compilation of Terminal Use Schedules

58. Terminal Services are provided according to the Service Schedules compiled in accordance with the procedure established under the Regulations and approved by the Operator. Service Schedules can be established for a Gas Year (i.e. Annual Schedule) and a Gas Year's Month (i.e. Monthly Schedule).

59. The Operator has the right to regulate the modes of Terminal operation and establish Service Schedules in order to ensure continuous, appropriate and safe operation of the Terminal. In order to ensure continuous operation of the Terminal, Terminal Users shall maintain the necessary Minimum operational LNG heel level specified in clause 10 of the Regulations. The amount of the Minimum operational LNG heel level is assigned among Terminal Users in proportion to the owned LNG quantity stored at the Terminal.

60. When establishing Service Schedules, the Operator collects from Terminal Users information about their requested schedules for respective service provision and cooperates with Terminal Users in order to determine optimal Service Schedules that would satisfy all interested Terminal Users. Should Terminal Users fail to agree regarding Service Schedules, the Operator has the right to make the final decision.

61. Should a Terminal User violate requirements of the Regulations regarding establishment, coordination and/ or keeping on the Service Schedules, the Operator can decide to assign a penalty, which is calculated based on a corresponding formula specified on the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

62. The amounts of LNG planned to be regasified and/ or reloaded as specified in the Service Schedules submitted by Terminal Users to the Operator shall comply with annual amounts (in case the Terminal Capacities are allocated during the annual Terminal Capacities Allocation Procedure) and monthly amounts provided in the Monthly schedules (in case the Terminal Capacities are allocated after the end of the annual Terminal Capacities Allocation Procedure) specified in the requested Preliminary Services Schedule. Terminal User is allowed to deviate from the Service Schedule confirmed to him by not more than 5 (five) percent of the total LNG amounts during the entire period of use of Terminal Services within the Gas Year specified in such Service Schedule as planned and separately accumulated for (cargo) delivery, Regasification and/ or Reload without incurring penalties. This requirement does not apply to the Designated Supplier within the scope of assigned Terminal Capacities necessary to ensure the fulfillment of Terminal mandatory quantity supply obligation.

6.1. Annual Schedule

63. Not later than till the 8th of June of each Gas Year [for the first year of Terminal operation, up to the 15th of September], each Terminal User shall provide the Operator with its proposed Annual Schedule draft (based on the form attached as Regulations Annex No. 10) with regard to the schedule of planned Maintenance announced by the Operator. The following information shall be specified in the Annual Schedule draft:

63.1. Exact monthly and daily amounts of LNG Regasification and/ or exact amounts of LNG Reload.

63.2. Requested LNG Carrier Arrival Periods of not more than 6 (six) days.

63.3. Exact number of LNG Carriers and sizes of Cargoes to be delivered and/ or reloaded.

63.4. If known at the time, names of LNG Carriers, international marine organization numbers and whether the LNG Carrier is arriving for LNG Loading or LNG Reloading.


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64. Having combined all Annual Schedule drafts submitted by the Terminal Users the Operator not later than 5 (five) calendar days evaluates whether:

64.1. Such projects within the Joint Annual Terminal schedule are compatible with the Terminal's Technical Characteristics according to clause 10 of the Regulations and other requirements of the Regulations; as well as whether

64.2. LNG Carrier Arrival Periods are mutually compatible, considering that according to the Joint Annual Terminal schedule there is a time window of at least 3 days between the Arrival Period of one LNG Carrier and the Arrival Period of the next Carrier, as defined in the Annual Schedule drafts and the combined Annual Schedule ensures Joint Terminal Use as specified in section 7.4 of the Regulations. If, according to the Operator, Annual Schedule drafts submitted by the Terminal Users meet the aforementioned conditions, the Operator approves Annual Schedules of all the Terminal Users as well as the annual Joint Terminal Schedule.

65. If, according to the Operator, Annual Schedule drafts submitted by any of the Terminal Users do not comply with the conditions set forth in clause 64 of the Regulations, the Operator:

65.1. Suggests that the Terminal Users eliminate the inconsistencies with requirements of the Regulations specified by the Operator and/ or coordinate among themselves the Annual Schedule drafts proposed by the Terminal Users within 7 (seven) calendar days.

65.2. Should the Terminal Users fail to eliminate the inconsistencies with requirements of the Regulations and/ or coordinate among themselves the Annual Schedule drafts, the Operator not later than 7 (seven) calendar days corrects the Annual Schedule drafts of the Terminal Users following the scheduling procedure set forth in clause 66 of the Regulations and provides these Annual Schedules to the Terminal Users.

65.3. Not later than 3 (three) calendar days from the day of provision of Annual Schedules the Terminal Users have the right to provide the Operator with mutually coordinated Annual Schedule drafts amended by the Operator. The Operator accepts such an offer if it satisfies the conditions stipulated in clause 64 of the Regulations and, according to the Operator, does not constitute a complication in operation of the Terminal.

65.4. If the Operator does not approve corrected Annual Schedule drafts submitted by the Terminal Users in accordance with the procedure established in clause 65.3 of the Regulations or if the Terminal Users do not exercise this right, the Operator approves the Terminal Users' Annual Schedules corrected in accordance with clause 65.2 of the Regulations and the annual Joint Terminal Schedule.

66. In case established under clause 65.2 of the Regulations the Operator seeks to ensure continuous, appropriate, and safe operation of the Terminal as well as Joint Terminal Use and performs the following procedure when making a decision regarding establishment of the Annual Schedules (including the Cargo sizes and Arrival Periods):

66.1. The Operator shall merge the Annual Schedule drafts provided by the Terminal Users, excluding information set in clauses 63.2 and 63.3 of the Regulations and form a Joint Terminal Annual Schedule. The Operator forecasts the LNG level at the Terminal for the Joint Terminal Annual Schedule taking into account the use of Terminal services provided in the Annual Schedule drafts provided by the Terminal Users and the theoretical possible amount of LNG consumed for technological needs of the Terminal.

66.2. The Operator shall divide the planned Gas Year into Slots within the Joint Terminal Annual Schedule for the purposes of planning the specific Cargos of Terminal Users and setting the Arrival Periods. For the purposes of maintaining continuous operation of the Terminal, the first Slot shall commence on the first day when the amount of LNG in the Terminal during the planned Gas Year would reach the minimum operational LNG heel level as specified in clause 10 of the Regulations and shall end upon withdrawal of the first Cargo from the Terminal through the use of Terminal Services according to the Joint Terminal Annual Schedule including the theoretical possible amount of LNG consumed for technological needs of the Terminal. The withdrawal of the Cargo for scheduling purposes shall be considered completed when the amount of LNG in the Terminal would reach the minimum operational LNG heel level. If the minimum operational LNG heel


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level is reached during the Arrival Period of LNG Carrier for Reloading, the date of withdrawal of the Cargo shall be considered as the first day of the Arrival Period.

66.3. The priority for assignment of Slots shall be given to the Designated Supplier, which shall be entitled to indicate within the scope of assigned Terminal Capacities necessary to ensure the fulfillment of Terminal mandatory quantity supply obligation the Arrival Periods and exact size of the Cargo, unless for the specific Slots there are the Terminal Users whose quantity of LNG being lent to other Terminal Users calculated according to the formula provided in clause 66.4 of the Regulations is the least throughout the entire Slot. The Operator has the right to demand the Designated Supplier to change it’s Annual Schedule draft so that when the Joint Terminal’s Annual Schedule is formed, the supply of the minimum quantity necessary to ensure the maintenance of a stable regasification technological process at the LNG terminal or maintenance of technical condition of the LNG terminal, which if required enables to commence regasification after the regasification process of the LNG Terminal was temporarily not performed and to supply natural gas meeting natural gas quality requirements set in the legal acts of the Republic of Lithuania to the Transmission System, is ensured.

66.4. As the holder of the first Slot the Operator shall appoint the Terminal User who commits to deliver such Cargo quantity to the Terminal the utilization of which through the use of his Terminal Services entails least joint Terminal use throughout the Slot (smallest possible Loanable Amount of LNG according to section 7.4 of the Regulations) according to the following formula:

Ql = C – U (kWh),

Where:

Ql – Quantity of LNG being lent to other Terminal Users (Loanable Amount of LNG) during the Slot (kWh);

C – exact Cargo size indicated in Annual Schedule draft of the Terminal User (m3

converted to kWh using 12.21 kWh/m3 upper calorific value or another value forecasted by the Terminal Operator considering the data provided by the Terminal Users). If the Terminal User has indicated multiple Cargo sizes in Annual Schedule draft, the above formula shall be applied to all Cargo sizes in order to identify the least quantity of LNG being lent by such Terminal User throughout the Slot;

U – Amount indicated in Annual Schedule draft of the Terminal User to be regasified and/ or reloaded with added theoretical possible amount of LNG consumed for technological needs of the Terminal forecasted by the Operator until the complete withdrawal of specific Terminal User’s Cargo (kWh).

The holder of the first Slot shall indicate to the Operator requested Arrival Period of LNG Carrier for LNG Loading of not more than 6 (six) days (taking into account the allowed Arrival period beginning and end dates provided in this clause) as well as exact size of the first Cargo to be delivered. Arrival Period for LNG Loading may not end later than one day prior to the day when the amount of LNG in the Terminal would reach the minimum operational LNG heel level, however may start as early as it is technically possible to load the Cargo according to the Terminal’s Technical Characteristics set in clause 10 of the Regulations.

66.5. Second Slot shall commence at the day of withdrawal of the first Cargo and shall end upon withdrawal of the second Cargo from the Terminal through the use of Terminal Services according to the Joint Terminal Schedule including theoretical possible amount of LNG consumed for technological needs of the Terminal forecasted by the Operator. The Operator shall assign the second Slot to the Terminal User whose quantity of LNG being lent to other Terminal Users calculated according to the formula provided in clause 66.4 of the Regulations is the least throughout the entire Slot. Such Terminal User shall indicate requested Arrival Period for LNG Loading and exact size of the Cargo to be delivered in accordance with the principles set in clause 66.4 of the Regulations.

66.6. Every other subsequent Slot shall be assigned to the Terminal Users and the Cargos as well as the Arrival Periods for LNG Loading shall be scheduled in accordance with the


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principles set in clauses 66.4 and 66.5 of the Regulations, except for the case set in clause 66.7 of the Regulations.

66.7. If during the assignment of Slots it occurs that in accordance with Joint Terminal Schedule specific Terminal User is assigned a Returnable Amount of LNG equal to more than one half (1/2) of the average Cargo size calculated based on the size of Cargos indicated in the Annual Schedule draft provided by such Terminal User, he (LNG Borrower) shall become a holder or the next Slot for the purposes of returning of Borrowed Amount of LNG, unless according to the Joint Terminal Schedule no LNG reloading and/ or regasification services are foreseen for the Lender of LNG throughout this Slot. In this case, the LNG Borrower shall be assigned the nearest Slot where the use of Terminal Services for the LNG Lender is scheduled. If more than one Terminal User has been assigned a Returnable Amount of LNG equal to more than one half (1/2) of his average Cargo, firstly the next Slot shall be assigned to the Terminal User having the oldest Borrowed Amount of LNG and other Terminal Users who have been assigned the Returnable Amount of LNG are considered afterwards by age of Borrowed Amount of LNG from second oldest to newest.

66.8. The principle set in clause 66.7 of the Regulations shall also apply for the assignment of the first or subsequent (depending on the use of Terminal Services by the LNG Lender) Slots of the planned Gas Year, if the LNG Borrower was not assigned the Slot for returning of Returnable Amount of LNG equal to more than one half (1/2) of his average Cargo in the approved Annual Schedule of the current Gas Year. Provisions of clause 66.7 of the Regulations shall mutatis mutandis apply if more than one Terminal User is in such situation.

66.9. The Arrival Periods for LNG Reloading cannot coincide (meaning that the time window indicated in clause 64.2 of the Regulations must be met). In case of coincidence, the Terminal Users shall coordinate among themselves the Arrival Periods or if they do not exercise this right, the Operator for determining of each Slot shall first adjust the Arrival Period(s) for LNG Reloading following the procedure set in clauses 66.10 – 66.13 of the Regulations and then set the Arrival Periods for LNG Loading following the procedure set in clauses 66.2 – 66.8 of the Regulations.

66.10. Scheduling of Arrival Periods for LNG Reloading within a Slot shall be performed to fit the maximum number of LNG Carriers within a Slot, seeking to retain the Arrival Periods indicated by Terminal Users in the Annual Schedule drafts as close to the requested ones as possible. The time window indicated in clause 64.2 of the Regulations between the LNG Carriers arriving for LNG Reloading must also be ensured.

66.11. If Arrival Periods not longer than 6 (six) days for LNG Reloading indicated in the Annual Schedule drafts of multiple Terminal Users overlap, the 6 (six) days Arrival Period which starts later is shifted forward 3 days after 6 (six) days Arrival Period starting earlier. If multiple Terminal Users indicate the exactly coinciding Arrival Periods for LNG Reloading, the Arrival Period of LNG Carrier designated to reload smaller amount of LNG shall be shifted forward.

66.12. If a Terminal User in his Annual Schedule draft indicates an Arrival Period for LNG Reloading which overlaps with the date when the amount of LNG in the Terminal would reach minimum operational LNG heel level and positioning the LNG Carrier within that Arrival Period determines whether such LNG Carrier would be in the initial or the subsequent Slot, the Terminal User must select the Slot for arrival of his LNG Carrier and the number of days out of the Arrival Period which would put him in the other Slot are moved so that he fits in the selected Slot with his Arrival Period not longer than 6 (six) days. In case Terminal User selects the initial Slot, the Arrival Period for LNG Loading for such Slot shall commence not later than 3 days before the Arrival Period for LNG Reloading.

66.13. If after shifting the Arrival Periods for LNG Reloading in accordance with the procedure set in clause 66.11, the Arrival Periods do not fit within the Slot they would have fit according to the Arrival Periods indicated Annual Schedule drafts of the Terminal Users, the number of days of such Arrival Periods are reduced to the maximum number of days which allow to fit of all the initially indicated LNG Carriers into the Slot. If the Arrival Periods for LNG Reloading are reduced to 1 (one) day and still not all LNG Carriers fit


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within the Slot, the non-fitting Arrival Periods are shifted to the subsequent Slot maintaining the order of the Arrival Periods.

67. In accordance with the annual Joint Terminal Schedule the Operator assigns Terminal Users a Loanable Amount of LNG, balance of which is presented to the Terminal Users in accordance to the procedure set forth in the Inter-Use Terminal Contract.

68. Terminal Users' Annual Schedules approved by the Operator are sent to the Terminal Users who have to return them signed to the Operator not later than 3 (three) calendar days from their sending in accordance with provisions of clause 193 of the Regulations. Should a Terminal User fail to return a signed Annual Schedule within the specified period of time, it is considered that the Terminal User's Annual Schedule approved by the Operator is valid for such Terminal User. Should a Terminal User refuse to sign the Annual Schedule in written form, the procedure of establishment of the Annual Schedule is repeated without such Terminal User. Such Terminal User is subject to penalties established according to the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values. Annual Joint Terminal Schedule is published on the Operator's internet website not later than 2 (two) months before the beginning of a Gas Year and becomes mandatory for the Terminal Users from its publication moment.

69. Terminal Users have the right to submit individual proposals to the Operator regarding correction of approved Annual Schedules, including Arrival Periods. Within 5 (five) working days of receiving such proposals the Operator can approve said proposals if they comply with requirements, inter alia clause 64 of the Regulations, do not contradict the limitations of use of the Terminal and/ or Transmission System, comply with safety requirements, and do not change Annual Schedules, including Arrival Periods, of other Terminal Users or if other Terminal Users agree to such changes.

70. Terminal Users have the right, by submitting the Operator a notice not later than 20 (twenty) calendar days before the beginning of each month, to change its LNG Reloading Capacities to LNG Regasification Capacities, except for the cases where it is explicitly stated otherwise in legal acts, provided that it is compatible with the Terminal’s Technical Characteristics according to clause 10 of the Regulations. Terminal Users can exercise the right established in this clause only if such change does not affect the rights of other Terminal Users or in case Operator is provided with a written agreement of all Terminal Users affected by the Capacities replacement.

6.2. Monthly Schedule

71. Not later than 35 (thirty five) calendar days before the beginning of each calendar month of the Gas Year, during which, according to the Annual Schedule, the Terminal User is going to use Terminal Services, each Terminal User shall submit to the Operator its proposed Monthly Schedule draft for the respective month (based on the form provided in Regulations Annex No. 11). Information specified in the proposed Monthly Schedule draft shall not contradict the information specified for the same month in the Annual Schedule or Monthly schedule (when Terminal capacities were allocated after the end of the annual Terminal Capacities Allocation Procedure) approved for the Terminal User. The following information shall be specified in the Monthly Schedule draft:

71.1. Exact amounts of LNG Regasification and/ or LNG Reload for each day.

71.2. LNG Carrier Arrival Periods narrowed to a 2 (two) days interval.

71.3. Information about LNG Carriers, arriving during the respective month (names of LNG Carriers, international marine organization numbers, registration and/ or date of approval at the Terminal, whether the LNG Carrier is arriving for LNG Loading or LNG Reloading).

71.4. Detailed information about each Cargo planned to be delivered during the respective month indicating the exact amount of LNG and planned LNG Quality at the port of loading of the LNG Carrier and at the Terminal.

71.5. Information about the Agent, if available.

72. When submitting Monthly Schedule draft, Terminal Users of Terminal Capacities are allowed to deviate from the deliverable (cargo) LNG amounts specified in their confirmed Annual Schedules (in case the Terminal Capacities were allocated during the annual Terminal Capacities Allocation


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procedure) or Monthly Schedules (in case the Terminal Capacities were allocated after the end of the annual Terminal Capacities Allocation Procedure) by not more than 10 (ten) percent if it does not affect Service Schedules of other Terminal Users, or other Terminal Users agree with such change and it is compatible with Terminal technical characteristics. Terminal Users can deviate within the aforementioned limits more than once in a row when it does not violate the right of other Terminal Users to use the deviation allowance. An increase to the 10 (ten) percent specified in this clause is possible after a mutual agreement has been reached between the Operator and the Terminal User and if it does not affect Service Schedules of other Terminal Users or they agree with such change.

73. Having received the Terminal Users' Monthly Schedule drafts the Operator combines them into a monthly Joint Terminal Schedule and with respect to the conditions set forth in clause 64 of the Regulations agrees on the joint technical monthly regasification schedule in accordance with the contract of Cooperation with the Transmission System Operator. Based on the joint technical monthly regasification schedule, the Operator prepares corrections to the Terminal User Monthly Schedule drafts or approves them if they comply with the conditions set forth in clause 64 of the Regulations and there is in accordance with the joint technical Terminal monthly regasification schedule with the Transmission System Operator. Total LNG Regasification quantities according to the Terminal User’s Monthly Schedule draft have to meet the total gas quantity of the respective month provided in the Terminal User’s gas quantity applications submitted to the Transmission System Operator. The operator not later than 5 (five) calendar days informs the Terminal Users in writing about suggestions on the Monthly Schedule draft corrections or about approved Terminal Users' Monthly Schedules and monthly Joint Terminal Schedule. If it is not possible to schedule the planned Maintenance works, as indicated in clause 166.3 of the Regulations, so that they do not coincide with the Arrival Periods of the LNG Carriers, Operator, when combining Terminal Users’ Monthly Schedule drafts, has the right to adjust the LNG Carriers Arrival Periods specified therein within the limits of a 6 (six) days interval provided in the approved Annual Schedule for the Terminal Users.

74. Terminal Users shall submit to the Operator adjusted Monthly Schedule drafts with regard to the Operators suggestions not later than 5 (five) calendar days from the day of the Operator's suggestions on the Monthly Schedule draft corrections submitted by Terminal Users.

75. Should Terminal Users fail to submit Monthly Schedule drafts or corrected Monthly Schedule drafts before the deadlines specified in this section the Operator prepares and approves Terminal Users' Monthly Schedules and a monthly Joint Terminal Schedule with regard to the information specified in the approved Annual Schedules of these Terminal Users as well as agreeing on the monthly Joint Terminal Schedule according to the cooperation with the Transmission System Operator contract.

Apart from other information the monthly Joint Terminal Schedule specifies a Joint Terminal Use Period, Loanable Amount of LNG, and the term of lending, Returnable Amount of LNG, and the deadline for its return as established in provisions of section 7.4 of the Regulations. According to the monthly Joint Terminal Schedule, the Operator assigns to Terminal Users a Loanable Amount of LNG and Returnable Amount of LNG, determines the terms of their provision as well as return specifying this information in the Monthly Schedules of the Terminal Users.

76. Monthly Schedules of Terminal Users approved by the Operator have to be signed according to the clause 68 of the Regulations. In case the Monthly Schedules of the users are approved within the scope of clause 71 of the Regulations without deviating from their provided Monthly Schedule drafts, signing procedure is not needed and the Operator informs about such schedule approval according to the clause 73 of the Regulations. Provisions of clause 69 of the Regulations are mutatis mutandis applied to submission of proposals regarding correction of Monthly Schedules. Within 5 (five) working days of approval of the Monthly Schedules by the Operator, monthly Joint Terminal Schedule published on the Operator's internet website shall be updated accordingly. If based on the gas quantity applications provided by the Terminal User to the Transmission System Operator it becomes clear that the total gas quantity of the respective month does not match the LNG Regasification quantity provided in the approved Terminal User’s Monthly Schedule, the Terminal User’s Monthly Schedule is adjusted so, that the total LNG Regasification quantity would match the total gas quantity provided in the gas quantity applications of the respective month to the Transmission System Operator by the Terminal User. Such corrections can only be made if adjustments do not influence other Terminal User rights or if a written agreement concerning the


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capacity changes of all the Terminal Users influenced by the adjustment is provided to the Operator.

7. Terms and Conditions of Terminal Use

7.1. LNG Carrier Approval Procedure

77. LNG Carriers planned to be moored at the Terminal shall comply with all standards of the Republic of Lithuania and international standards as applicable for such LNG Carriers as well as have all permissions to enter and carry out operations in the Port and meet all Port operation conditions as well as the requirements raised by the Operator and Port Manager.

78. Compliance of the LNG Carrier with the requirements specified in clause 77 of the Regulations during Arrival Period shall be ensured by the Terminal User.

79. LNG can be delivered to the Terminal by sea going LNG Carriers with tank capacity of minimum 65,000 m3 and maximum 160,000 m3.

80. LNG Carriers arriving to reload LNG from the Terminal shall have tank capacity of minimum 5,000 m3 and maximum than 65,000 m3.

81. LNG loading from LNG Carrier with tank capacity of more than 160,000 m3 and LNG Reloading into LNG Carrier with tank capacity of less than 5,000 m3 shall be coordinated by a separate agreement between the Operator and Terminal User.

82. LNG Carriers scheduled to arrive to the Terminal shall be confirmed in accordance with the Terminal approval procedure which is provided in the Operator's Technical Conditions, Conditions of Use of the FSRU stipulated in the Operator's Technical Conditions shall be signed, and Port Manager requirements shall be met. On its internet website the Operator continuously updates and announces the list of approved LNG Carriers at the Terminal.

83. Terminal Users shall submit a request to approve an LNG Carrier filled out in accordance with the form established in Operator's Technical Conditions not later than 60 (sixty) calendar days before expected Arrival Period of the LNG Carrier or within other terms as agreed between the Operator and Terminal User.

84. Terminal Users ensure that the owners of LNG Carriers should actively cooperate in the process of LNG Carrier approval by the Terminal and inform owners of LNG Carriers of the data submitted by the Operator.

85. Upon successful completion of the approval procedure LNG Carriers are approved at the Terminal for 2 (two) years. Should the name, country of registry, certificates, licenses, managing personnel and/ or owners or other data of an LNG Carrier approved at the Terminal change, the Operator has the right to request a repeated Terminal approval procedure for the LNG Carrier.

86. In order to ensure safe and smooth LNG Carrier arrival at the Terminal, the Operator has the right to demand from the Terminal User to meet additional conditions put forward by FSRU Owner, e.g. to submit the specific guarantees for LNG Carrier, to carry out additional safety inspection and/ or to comply with the technical and operational constraints.

87. Should the owner, manager, and/ or master of the LNG Carrier fail to fulfil or inadequately fulfil their duties or requirements to LNG Carriers set forth in the Regulations the Terminal User shall bear all responsibility for that.

7.2. Arrival of an LNG Carrier

88. Terminal User shall ensure, that the LNG Carrier owner or his designated person not later than 14 (fourteen) calendar days before the estimated time of arrival of LNG Carrier to the Terminal, shall provide a filled out LNG Carrier nomination request to the Operator, form of which is provided in the Operator’s Technical Conditions (Regulation Annex No. 3). Together with the LNG Carrier’s nomination request a pre-information questionnaire has to be provided (Annex No. 2 of Operator’s Technical Conditions).

89. The Terminal User shall ensure that the master of the LNG Carrier informs the Operator about departure from the port of loading and specifies estimated LNG Carrier arrival time by e-mail


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before arrival of the LNG Carrier at the Terminal as well as provide the Operator with the following documents:

89.1. Bill of Lading.

89.2. Loading Certificate.

89.3. Cargo Manifest.

89.4. Cargo Origin Certificate.

89.5. Cargo Safety Data Sheets (in English and Lithuanian languages).

89.6. Statement of Facts.

89.7. Master’s Receipt of the Documents.

89.8. Other documents specified in the Operator's Technical Conditions.

90. If an LNG Carrier arrives for the LNG Reload, the Terminal User shall ensure that the master informs the Operator about departure from port with the next call being at the Port and about estimated time of arrival at the Port.

91. The Terminal User shall ensure that the master of the LNG Carrier updates LNG Carrier arrival time for the Operator in intervals specified in the Operator's Technical Conditions.

92. The Master of the LNG Carrier or Agent provide the Operator with a free form Notice of Readiness immediately after the following conditions are met:

92.1. LNG Carrier has arrived at the Port.

92.2. Port Manager granted the LNG Carrier all permissions necessary to enter the Port and moor at the Terminal.

92.3. LNG Carrier has ordered all Port services necessary for mooring.

92.4. Terminal User and/ or other third parties granted the LNG Carrier all permissions necessary to carry out LNG Load and/ or LNG Reload and the LNG Carrier is ready to perform these operations.

93. Master of the LNG Carrier or Agent shall inform the Operator of any current or expected limitations that have or could have an impact on LNG Load and/ or LNG Reload as well as entry of the LNG Carrier into the Port or during its time in the Port. Detailed LNG Carrier arrival procedure is provided in the Operator's Technical Conditions.

94. Notice of permission to moor the LNG Carrier is given by the Operator to the master of the LNG Carrier or Agent and to the Port Manager.

95. The Operator provides the notice of permission to moor the LNG Carrier and/ or indicates LNG Carrier mooring time if Notice of Readiness is tendered properly, except for the cases where there are limitations to LNG Load and/ or Reload to/from the Terminal or the Terminal User informs the Operator of the circumstances because of which LNG Load and/ or Reload to/from the Terminal is impossible. The Operator has a right to refuse to moor an LNG Carrier at the Terminal if the Terminal User fails to provide or is late in providing the LNG Load / LNG Reload nomination in accordance with clause 132.3 of the Regulations. In this case the Operator will not be held liable for the Terminal User losses incurred as a result.

96. An LNG Carrier arriving at the Port and/ or submitting a Notice of Readiness earlier or later than the Arrival Period specified in the Monthly Schedule approved by the Operator is moored at the Terminal only if this does not impede mooring of LNG Carriers which arrive according to approved Monthly Schedules and if mooring of such LNG Carrier meets the technical parameters of Terminal use, does not contradict the limitations of Terminal use, and complies with safety requirements. In this case the Operator informs the master of the LNG Carrier or Agent and the Port Manager on agreement to moor the LNG Carrier at the Terminal. If the conditions established in this clause are not met, Operator rejects improperly tendered Notice of Readiness and specifies other mooring time. In all cases the Terminal User is assigned a liability as set forth in clause 105 of the Regulations for arrival of the LNG Carrier after the Arrival Period specified in the Monthly Schedule approved by the Operator.


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97. If 2 (two) LNG Carriers arrive at the same time outside of approved Arrival Periods they are serviced in accordance with the following priorities (unless Terminal Users agree on unloading of LNG Carriers otherwise and such agreement is approved by the Operator):

97.1. LNG Carrier whose Notice of Readiness was submitted after the Arrival Period and was not rejected by the Operator (Delayed LNG Carrier).

97.2. LNG Carrier whose Notice of Readiness was submitted before the Arrival Period and was not rejected by the Operator (Early LNG Carrier).

97.3. Delayed LNG Carrier can be denied mooring ahead of the Early LNG Carrier if the Operator determines that mooring of the Delayed LNG Carrier will impede mooring of the Early LNG Carrier when its Arrival Period begins.

7.3. Procedure of LNG Load and LNG Reload

98. During LNG Loading/ LNG Reloading operations LNG Carrier’s master and Agent shall observe orders, instructions, regulations, and other requirements towards activities in the Port and at the Terminal raised by the Port Manager and Operator.

99. LNG Load/ LNG Reload can only be carried out if:

99.1. The LNG Carrier has all the documents necessary for LNG Load / LNG Reload and is appropriately authorized by the Terminal User and/ or third parties to perform LNG Load/ LNG Reload at an agreed time.

99.2. LNG Carrier’s master or a person authorized by him/her performed SSSC in attendance of the Operator or its authorized representative.

99.3. LNG level and pressure at the top of LNG Carrier's tanks, tightness of tanks, LNG temperature in each of LNG Carrier's tanks and other necessary parameters are identified in the presence of an Expert.

99.4. The Terminal User ensured that LNG Carrier’s master has ordered a tug boat with fire-fighting equipment for the period of LNG Load and/ or LNG Reload.

100. The Operator has the right to stop LNG Load/ LNG Reload or not to start LNG Load / LNG Reload and demand the LNG Carrier to unmoor from the Terminal and allow access to the Terminal for other LNG Carriers in the following cases:

100.1. Justified order from the Port Manager has been received.

100.2. The document confirming completion of SSSC has not been signed.

100.3. The LNG Carrier does not fulfil orders and instructions from the Port Manager and/ or Operator, Regulations, and other requirements towards its activities in Port and at the Terminal, including safety requirements, or fulfils them inappropriately.

100.4. Upon decision of the Operator when the condition of the LNG Carrier or LNG Load (LNG Reload) can cause hazards to people, property, Terminal operation and/ or environment.

100.5. Delivered LNG does not meet quality requirements specified in the Cargo Measurement Procedure.

100.6. In case of other circumstances specified in the Regulations and/ or Contract, which are outside of the Operator's control.

101. LNG Load / LNG Reload ends when the entire ordered amount of LNG has been loaded (reloaded). In all cases the Operator shall make every reasonable effort to start LNG Load / LNG Reload immediately but in all cases not later than 6 (six) hours after properly tendered Notice of Readiness as it is stipulated in Operator’s Technical Conditions, provided that there are no Port Manager restrictions for LNG Carrier to enter the Port and any other conditions beyond the control of the Operator, as well as to complete LNG Load / LNG Reload at the earliest possible term, which shall not exceed the Loading Period / Reloading Period specified in clauses 12.1 and 13.1 of the Regulations. If this time period specified in clauses 12.1 and 13.1 of the Regulations is exceeded because of the Operator's fault, the Operator shall compensate the LNG Carrier’s demurrage losses for the time which exceeded the Loading Period / Reloading Period.


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102. Upon completion of LNG Load / LNG Reload the LNG Carrier shall not later than 4 (four) hours unmoor and allow access to the Terminal for other Terminal Users, except for the cases when the Port Manager gives the LNG Carrier other orders or if a different unmooring and/ or access procedure is agreed with the Operator. Should the LNG Carrier fail to unmoor within the period specified in this clause, the Operator can assign a penalty established in accordance with the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

103. LNG Carrier’s master and Operator perform LNG Load / LNG Reload in accordance with the safety requirements. The Operator is responsible for appropriate performance of LNG Load / LNG Reload operations at the Terminal until Terminal's flexible LNG loading hoses connections on the LNG Carrier.

104. The Operator is not responsible for any direct or indirect losses incurred by the Terminal User, LNG Carrier, its owner, manager, LNG Seller, carrier and/ or mediators, agents as well as any other related third parties in the following cases:

104.1. The Operator has stopped LNG Load / LNG Reload or did not start LNG Load / LNG Reload in accordance with the conditions set forth under the Regulations.

104.2. LNG Load / LNG Reload was delayed or went by with interruptions because of the circumstances outside of the Operator's control.

105. A Terminal User covers all direct losses incurred by the Operator and losses incurred by other Terminal Users because of an LNG Carrier being late, i.e. arriving later than the Arrival Period specified in the Monthly Schedule of the Terminal User approved by the Operator, as well as failure to observe the requirement to unmoor from the Terminal and allow access to the Terminal for other LNG Carriers and/ or leave the Port, except for the cases where losses occur because of the Operator's actions or inaction or other circumstances specified in the Regulations and/ or Contract, which the Terminal User and/ or a person responsible for LNG Carrier management could not foresee and/ or control.

7.4. Procedure of Joint Terminal Use

106. In order to ensure the possibility for several different Terminal Users to use the Terminal effectively it is established that, in terms of usage of Terminal Capacities, several Inter-Users which use the Terminal simultaneously are regarded as one gross Terminal User. Respective rights and obligations of Terminal Users are established in the Inter-Use Terminal Contract which is entered into by the Operator and all of the Terminal Users.

107. According to the procedure established under the Regulations and conditions stipulated in the Inter-Use Terminal Contract, to ensure Joint Terminal Use, LNG delivered by Terminal Users to the Terminal can be assigned to one of the Inter-Users in accordance with the procedure specified hereunder regardless of which Inter-User delivered LNG are being reloaded and/ or regasified:

107.1. When, according to approved Service Schedules of Terminal Users, the Cargo delivered by one of the Terminal Users, i.e. LNG Lender, is being regasified at a rate below the maximum regasification rate of the Terminal, while the Cargo of another Terminal User, i.e. LNG Borrower, shall not be delivered to the Terminal according to the Service Schedule of this Terminal User but according to the said Service Schedule - LNG Regasification and/ or LNG Reload should be started for the LNG Borrower, part of the LNG Lender's Cargo, including the amount of LNG consumed for Terminal technological needs, i.e. Loanable Amount of LNG, is lent to the LNG Borrower automatically, without separate agreement, with regard to the Service Schedule.

107.2. Loanable Amount of LNG is equivalent to the returnable amount of LNG by the LNG Borrower to the LNG Lender in the Inter-use Terminal Contract, including the respective amount of LNG consumed for technological needs of the Terminal assigned to the Terminal User (hereinafter referred to as Returnable Amount of LNG) .

107.3. Loanable Amount of LNG for the purposes envisaged under the Regulations and Inter-Use Terminal Contract is held to be temporarily lent by the LNG Lender to the LNG Borrower. Correspondingly, Returnable Amount of LNG is held to be LNG returned by LNG Borrower to LNG Lender.


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107.4. In cases where there are more than two Inter-Users, it is assumed that Loanable Amount of LNG is assigned to Inter-Users equal in quantity (measured in energy value) to the amount of LNG Reloaded and/ or regasified including the respective amount of LNG consumed for technological needs of the Terminal assigned to the Terminal User over the period of Reload and/ or Regasification of Cargo of each respective Inter-User, while Returnable Amount of LNG is assigned equal in quantity (measured in energy value) to the amount of LNG Reloaded and/ or regasified including the respective amount of LNG consumed for technological needs of the Terminal assigned to the Terminal User over the period of Reload and/ or Regasification of Cargo for each respective Inter-User by applying the first-lent-first-returned (FIFO) principle. In case Inter-Users are assigned Returnable Amount of LNG of the same age, the smaller Returnable Amount of LNG shall be considered as returned first. Detailed principles of LNG lending and returning are provided in the Inter-Use Terminal Contract.

107.5. The Operator seeks to set out the Service Schedules for LNG delivered by Inter-Users so as to ensure that, after application of these provisions, each Inter-User from whose delivered LNG a Borrowed amount of LNG is taken would actually receive LNG according to the schedule as if no provisions were applied. LNG Lender and LNG Borrower determine Cargo sizes with regard to Loanable Amount of LNG and Returnable Amount of LNG encompassing respective amounts of LNG consumed for technological needs.

108. Provisions of clause 107 of the Regulations cannot be applied:

108.1. If the Terminal would at any time have to operate in a mode that does not comply with the requirements of these Regulations because of Joint Terminal Use.

108.2. If, according to the Operator's justified opinion, application of provisions of clause 107 of the Regulations would cause a hazard to safe, efficient, and reasonable operation of the Terminal in a specific situation.

109. Inter-Users have the right to agree the conditions of Joint Terminal Use in accordance with the procedure set forth under the Inter-Use Terminal Contract to the extent that does not violate the requirements of the Regulations and interests of other Terminal Users.

110. When implementing its functions, the Operator applies efforts in order for Terminal Capacities to be used as efficiently as possible, however, in cases specified in clause 109 of the Regulations, the Operator considers the conditions of implementation of such agreement established under the Inter-Use Terminal Contract.

111. In order to secure obligations related to Joint Terminal Use, including the obligation to ensure provision of Cargo delivery, Terminal Users submit a Bank Guarantee established under the Inter-Use Terminal Contract.

112. The Operator bears no responsibility for any consequences of Joint Terminal Use or Inter-User actions (inaction) for interests of Inter-Users, except for the Operator's liability arising from cases provided in the Regulations regarding violation of the Operator's duties envisaged under the Regulations or legal acts.

7.5. Requirements to Quality of LNG, LNG Quality and Quantity determination

113. Terminal User has to ensure that the quality of LNG delivered to the Terminal will comply with the requirements towards natural gas quality set forth under the legal acts of the Republic of Lithuania at the time of completion of LNG Reloading and/ or release of regasified natural gas into the natural gas Transmission System. The Operator ensures that the quality parameters of LNG delivered by a Terminal User or quality of LNG mixtures with LNG delivered by other Terminal Users (in cases where LNG is mixed) obtained during provision of Terminal Services will not change in excess of changes occurring in such parameters by natural LNG ageing process.

114. Terminal User always has to consider and take into account that LNG Quality parameters change over time, therefore, quality parameters of LNG delivered to the Terminal can differ from the same regasified gas quality parameters or respectively change during transportation from export port to Terminal.


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115. The amount of LNG legally managed by a Terminal User that is placed in the Terminal and the amount of regasified natural gas or reloaded LNG is calculated according to the requirements set forth under the Regulations and the Cargo Measurement Procedure.

116. The Operator continuously monitors the quality of natural gas, based on which the Operator forecasts changes in LNG Quality during Cargo Storage in the Terminal, preliminarily evaluates when LNG Quality might become non-compliant with the LNG Quality requirements, and immediately informs the Terminal User accordingly.

117. All LNG tanks aboard an LNG Carrier have to be calibrated by independent authorized institutions according to current international standards and have documents with data necessary for LNG measurement and accounting.

118. All documents with LNG parameter measurement results shall be approved by an Expert in the presence of the Operator and Terminal User or its authorized representatives. If a Terminal User or its authorized representative does not take part in Cargo inspection, the Expert is considered to be authorized to represent the Terminal User in all Cargo inspections, unless otherwise provided in an agreement between the Operator and Terminal User.

119. Terminal Users shall ensure that the amount and quality of unloaded/reloaded LNG are determined in accordance with Cargo Measurement Procedure.

120. The amount of LNG unloaded into the Terminal/reloaded from the Terminal is determined in the following way:

120.1. The amount of LNG aboard an LNG Carrier is measured in accordance with the procedure and conditions established under the Cargo Measurement Procedure prior to and after the unloading of the Cargo into the Terminal/reloading of the Cargo from the Terminal in the presence of an Expert, Operator, and Terminal User.

120.2. The amount of LNG is confirmed by an Outturn Certificate issued by LNG Carrier’s Master or its authorized representative, wherein the results of LNG measurement, calculations, and other necessary data are specified.

121. Unloaded/reloaded LNG amount is calculated according to the following formulas:

Unloaded LNG amount to the Terminal:

bogrm QQHdVE )(

Loaded LNG amount from the Terminal:

bogrm QQHdVE )(

Where:

E – Unloaded/reloaded amount of LNG expressed in kWh.

V – Unloaded/reloaded amount of LNG expressed in m3.

d – LNG density expressed in kg/m3 (kilograms per cubic meter of LNG).

Hm – gross heating value of LNG expressed in kWh/kg.

Qbog – energy value of natural gas consumed by the LNG Carrier during LNG unloading/reloading expressed in kWh.

Qr – energy value of gas returned to the LNG Carrier during unloading/energy value of gas returned to the Terminal during reloading expressed in kWh.

122. Every working day the Operator provides Terminal Users with information about the amount of LNG being in the Terminal due to each Terminal User as well as quality and amount of gas regasified in the Terminal.

123. The amount and quality of LNG unloaded into the Terminal/reloaded from the Terminal is determined in accordance with the procedure established under the Cargo Measurement Procedure. The Operator can refuse to accept a Cargo if:


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123.1. The Cargo loaded at the LNG export port has a Loading Certificate specifying LNG Cargo specification does not comply with the requirements towards LNG Quality set forth under the legal acts of the Republic of Lithuania.

123.2. LNG Quality of Cargo loaded at the LNG export port evaluated according to the Loading Certificate is not compliant with the requirements towards LNG Quality set forth under the legal acts of the Republic of Lithuania at the time of unloading of LNG into the Terminal.

123.3. Taking into account LNG Quality, density and temperatures of both Cargo stored at the Terminal and the Cargo loaded at the LNG export port, LNG roll-over phenomena is likely to happen.

124. Having refused to accept the Cargo the Operator shall inform the Terminal User accordingly not later than on the next working day after receiving a Loading Certificate. The terminal User has a right to apply to the Operator regarding the possibility to accept the Cargo which does not comply with requirements of clauses 123.1 and/ or 123.2 of the Regulations by providing the Operator with the written agreement of other Terminal Users whose Cargo quality or implementation of Service Schedule may be affected by such Cargo. In addition Terminal User shall provide evidences presenting the way the natural gas quality will be ensured to comply with the requirements towards natural gas quality set forth under the legal acts of the Republic of Lithuania at the time of completion of LNG Reloading and/ or release of regasified natural gas into the natural gas Transmission System

125. The Operator has the right to stop LNG Load if during LNG Load operations it is identified that the Cargo does not comply with the quality requirements set forth under the Cargo Measurement Procedure and the Terminal User is obliged to compensate all losses incurred by the Operator and other Terminal Users in this regard.

126. In accordance with provisions of the Operator's Natural Gas Accounting Policy (Annex No. 2 to the Regulations) amount of natural gas and LNG is updated and inventoried.

127. Upon justified request from a Terminal User the Operator shall provide all data related to determination and accounting of the amount and quality of natural gas and LNG.

128. The Operator performs inventory of LNG in the Terminal not less than once per year. If during inventory it is identified that the available amount of LNG in the Terminal differs from the LNG accounting data and the difference does not exceed the Allowable Loss Norm according to the requirements of the legal acts of the Republic of Lithuania, then identified surplus or shortage is allocated to Terminal Users in proportion to the Terminal Capacities they have used over the respective inventory period. Identified shortage in excess of the Allowable Loss Norm is assigned to the Operator's Natural Gas Loss, which the Operator compensates in accordance with the procedure specified in the Natural Gas Accounting Policy.

129. Terminal Users have the right to request the Operator to perform an unscheduled LNG inventory according to provisions of the Natural Gas Accounting Policy approved by the Operator. Requesting Terminal User covers the Operator's expenses incurred due to the unscheduled natural gas and LNG inventory if the inventory reveals that the Allowable Loss Norm was not exceeded. Otherwise, these expenses are covered by the Operator.

7.6. Performance of LNG Load, LNG Regasification and LNG Reload

130. Terminal Users specify amounts of LNG sought to be regasified/reloaded by providing the Operator with Annual and Monthly Schedules. Final amounts of regasified/reloaded LNG are specified in Annual and Monthly Schedules compiled in accordance with the procedure and conditions specified in the Regulations.

131. The Operator shall load or reload the amount of LNG specified in LNG Load and/ or LNG Reload nomination provided by the Terminal User and confirmed by the Operator according to the procedures set forth in Operator’s Technical Conditions. The quantity of transferred natural gas allocated to the Terminal User on the specific day at the Transmission System's entry point is equal to the quantity approved by the Transmission System Operator, while the natural gas quantity regasified in the Terminal by the Operator for the user for a specific day is equal to the quantity provided in the Terminal User’s daily regasification request. The Operator aims to regasify and/ or reload LNG quantity as close as possible to the natural gas quantity approved in the request of the Terminal User. The Operator by providing Services has the right to deviate


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from the Terminal User’s approved daily LNG regasification requests not more than by 3 percent during the months of October to April and no more than 5 percent during the months of May to September. The Operator aims to remove the discrepancy which has occurred on the next Gas Day.

132. Based on approved Monthly Schedules Terminal Users have to submit to the Operator for approval daily liquefied natural gas regasification nominations (Annex No. 12 of the Regulations) as well as LNG Load and LNG Reload nominations (Annex No. 15 of the Regulations). In case of Joint Terminal Use nomination shall be submitted by the Terminal User for which Terminal Services will be provided in accordance with the confirmed Monthly Schedule. Nominations shall be submitted within the following terms:

132.1. Daily nominations for Terminal's Regasification Capacities are accepted by e-mail or in writing not later than before 10:00 AM (EEST) on the day preceding the day when the period of capacities use is to begin. The Operator adjusts submitted daily nomination and approves it before 05:00 PM (EEST).

132.2. If a Terminal User does not submit a daily nomination for an amount of Terminal's Regasification Capacities, it is considered that the amount of LNG to be regasified for that day is equal to the amount specified in the confirmed Monthly Schedule.

132.3. LNG Load and LNG Reload nominations shall be submitted not later than 2 (two) calendar days prior to the Arrival Period. If the Terminal User does not submit or is late to submit LNG Load or LNG Reload nomination, the provisions of clause 95 of the Regulations to be applied.

133. Total amount of Terminal Regasification Capacities nominated by a Terminal User can vary within the scope of daily nominations and LNG load or LNG reload nominations in comparison to quantities anticipated in the Monthly Schedule; however, in any case LNG regasification, LNG load and LNG reload nominations provided by the Terminal User cannot deviate from the Joint Terminal Schedule so much that it would be incompatible with the Terminal’s Technical Characteristics as specified in clause 10 of the Regulations.

7.7. Mandatory Changing of Service Provision Modes

134. The Operator organizes LNG Regasification so as to ensure continuous, appropriate, and safe Terminal operation and satisfaction of demand for the Terminal Capacities. The Operator has the right to perform LNG Regasification in a mandatory manner when:

134.1. There is a Cargo being delivered in accordance with an approved Monthly Schedule while the Terminal tanks are filled due to the failure to observe an agreed Service Schedule.

134.2. LNG Quality approaches the critical LNG Quality limit.

134.3. In other cases where, according to the Operator's justified opinion, this is necessary in order to achieve the goals provided for in clause 59 of the Regulations.

135. The Operator has the right to stop or speed up LNG Regasification in accordance with the procedure established in the Cooperation Contract with the Transmission System Operator, mix, relocate LNG in the Terminal and/ or undertake other measures to empty the Terminal tanks or necessitate the Terminal User to empty them, if the amount of LNG in the Terminal approaches the minimum operational LNG heel level necessary to maintain continuous operation of the Terminal as specified in clause 10 of the Regulations, if regasified LNG Quality or composition parameters approach or reach the critical limit, accordingly are lower or higher than specified in the legal acts of the Republic of Lithuania, or in other cases when, according to the Operator's justified opinion, this is necessary to ensure continuous, appropriate, and safe operation of the Terminal. Losses related to suspension of the Terminal's operation, acceleration of LNG Regasification, LNG mixing, Terminal tank emptying, LNG relocation in the Terminal are covered by the Terminal User, whose regasified LNG Quality and composition parameters are below or above the minimum or maximum values determined by the legal acts of the Republic of Lithuania and/ or due to whose actions or inaction continuous operation of the Terminal could not be ensured.


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136. Upon the Operator’s request the Terminal User shall organize cooling of the Terminal's tanks according to the conditions specified by the Operator when the Terminal's tanks have temperature insufficient for acceptance of a Cargo. Expenses of the Operator and the Terminal User which provided the cooling service related to and caused by cooling of the Terminal's tanks shall be covered by the Terminal User due to whose actions or inaction continuous operation of the Terminal could not be ensured except occasions when Terminal tank cooling expenses were caused due to actions or inaction of the Operator, in such case expense coverage is according to clause 178 of the Regulations.

137. In the cases, when the Operator performs LNG relocation in the Terminal (or) cooling of LNG tanks without the fault of the Terminal users with the aim to ensure continuous, appropriate and safe operation of the Terminal, the quantities of LNG consumed for technological needs of the Terminal, including the quantities exceeding the Allowable Loss Norm, are allocated to all the Terminal Users in accordance with the procedure specified in clause 6.3.1 of the Natural Gas Accounting Policy (Annex 2 of the Regulations).

138. In case of limitation/termination of provision of the Terminal Services in accordance with the procedure and circumstances specified in section 7.10 of the Regulations, expiry of a Terminal User's Contract before the term envisaged therein, and/ or hazard to continuous, efficient, and safe operation of the Terminal, as well as taking into account the actual LNG regasification, LNG reload quantities and/ or LNG quantities consumed for technological needs of the Terminal, the Operator has the right to switch the modes of LNG Load, LNG Reload, and LNG Regasification and/ or planned LNG Carrier Arrival Periods specified in the Service Schedules in a way that would least affect the Service Schedules. The Operator informs Terminal Users of the changes made to the Service Schedules not later than 24 (twenty four) hours. Adjusted Annual and/ or Monthly Schedules provided by the Operator are mandatory for Terminal Users.

7.8. Terminal Service Prices

139. Terminal Users shall settle with the Operator for the services provided at the prices specified in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

140. Terminal Users shall pay taxes and duties necessary to use Terminal Services and applicable to themselves, LNG Carriers, Cargoes or related equipment and persons.

141. The Operator does not administer other mandatory taxes for use of the Terminal Services if said taxes are payable on the grounds other than the provisions of the Regulations and List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values and bears no responsibility for consequences occurring because of non-payment of such taxes.

142. A Commission determines the price cap and/ or specific prices for the Terminal Services provided by the Operator in accordance with the procedure set forth in the Law on the Liquefied Natural Gas Terminal, Law on Natural Gas, and other legal acts. Specific prices of the Terminal services are calculated according to the formulas provided in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values and are publicly announced on the Operator's internet website.

143. Additional Terminal Services are subject to taxation according to rates established by the Operator in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values or calculated based on formulas and criteria specified therein.

144. The procedure and conditions of financial settlement for provided Terminal Services are established in the Terminal User's Contract.

7.9. Terminal User‘s Obligations Fulfilment Guarantees

145. The essential term of the Terminal User's Contract is that throughout the entire period of validity of the Terminal User's Contract and, in any case, at least until all of the Terminal User's obligations towards the Operator are fulfilled the Terminal User shall comply with Creditworthiness Requirements. Creditworthiness Requirements are not applicable to a Designated Supplier in the scope of Terminal Capacities which are assigned for mandatory


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amount supply in pursuance of obligations set forth under the Law on Liquefied Natural Gas of the Republic of Lithuania. A Terminal User is held to meet the Creditworthiness Requirements if:

145.1. The Terminal User has at least the Minimum Credit Rating as provided in clause 5.10 of the Regulations.

145.2. The Terminal User is supervised by a Parent Company and/ or group of companies that have at least the Minimum Credit Rating but no credit rating is established for the Terminal User; in this case the Terminal User submits, according to the form established by the Operator, the Parent Company's guarantee securing fulfilment of the Terminal User's obligations under the Regulations and Terminal User's Contract.

145.3. The credit rating of the Terminal User or its Parent Company and/ or group of companies, when no credit rating is established for the Terminal User, is lower than the Minimum Credit Rating, but the Terminal User submits, according to the form established by the Operator, a Bank's Guarantee securing fulfilment of the Terminal User's obligations under the Regulations and Terminal User's Contract. A bank's guarantee can be issued in the name of the Terminal User or its Parent Company and/ or group of companies when a bank's guarantee is submitted by the Parent Company and/ or group of companies on behalf of the Terminal User.

146. The guarantee of the Parent Company and/ or group of companies and bank's guarantee have to secure fulfilment of any obligations of the Terminal User under the Regulations and Terminal User's Contract. The Terminal User's obligations fulfilment guarantee submitted by a Parent Company as specified in clause 145.2 of the Regulations shall comply with the sample form provided in Regulations Annex No. 14. Obligations fulfilment guarantee provided by a bank as specified in clause 145.3 of the Regulations shall comply with the sample form provided in Regulations Annex No. 13. The amount of the guarantee provided by a Parent Company and/ or group of companies or amount of the Bank Guarantee shall be no less than the amount of guarantee calculated according to the formula specified on the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

147. Documents confirming that the Terminal User or its Parent Company and/ or group of companies or bank meet the Minimum Credit Rating and in cases established in clauses 145.2 and 145.3 of the Regulations, guarantee issued by a bank or Parent Company and/ or group of companies supervising the Terminal User shall be submitted to the Operator not later than 60 (sixty) calendar days before of signing of the Terminal User's Contract and not later than before the day of submission of the Terminal User's data for compilation of Services Schedules. Should the Terminal User fail to submit this evidence within the specified period of time, the Operator has the right to collect a penalty from the Parent Company and/ or group of companies guarantee or from Bank Guarantee submitted by the Terminal User in the amount calculated according to the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values.

148. The Terminal User shall provide the Operator with a guarantee of a bank compliant with the Minimum Credit Rating as specified in clause 145.3 of the Regulations not later than 10 (ten) calendar days if:

148.1. The Terminal User's credit rating has dropped below the Minimum Credit Rating.

148.2. The credit rating of the Parent Company and/ or group of companies supervising the Terminal User has dropped below the Minimum Credit Rating.

148.3. The credit rating of the bank that has issued a guarantee in the name of the Terminal User or its Parent Company and/ or group of companies dropped below the Minimum Credit Rating.

149. Once the Terminal User's credit rating rises and becomes equal to or higher than the Minimum Credit Rating or the Terminal User is assigned a credit rating that is equal to or higher than the Minimum Credit Rating, the bank's guarantee is returned to the Terminal User within 5 (five) working days of the day of submission to the Operator of sufficient evidence confirming the Terminal User's compliance with the Minimum Credit Rating. Once the credit rating of the Parent Company and/ or group of companies supervising the Terminal User becomes equal to or higher than the Minimum Credit Rating, the Terminal User has the right to replace the bank's guarantee with the Parent Company's guarantee. In this case the bank's guarantee is returned to the Parent


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Company and/ or group of companies supervising the Terminal User within 5 (five) working days of the day of submission of sufficient evidence prescribed by the Regulations that confirms Minimum Credit Rating compliance of the Parent Company and/ or group of companies supervising the Terminal User and provision of a guarantee from the Parent Company and/ or group of companies to the Operator. The value of the guarantee securing fulfilment of the Terminal User's Contract obligations is calculated for each Gas Year with regard for the amount of Terminal Capacities allocated to the Terminal User for the Gas Year in question based on the respective formula set forth in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values. If the guarantee securing fulfilment of the Terminal User's Contract obligations is used up by the Operator during the Terminal Capacity period such guarantee value is not recovered.

150. The period of validity of the guarantee securing fulfilment of the Terminal User's Contract obligations for the Terminal Capacities allocated during the annual Terminal Capacities Allocation Procedure shall:

150.1. Begin not later than on the first day of a Gas Year.

150.2. End not earlier than 1 (one) month after the day when respective Terminal Capacities were last used in a respective Gas Year.

151. The period of validity of the guarantee securing fulfilment of the Terminal User's Contract obligations for the Terminal Capacities allocated after the end of the annual Terminal Capacities Allocation Procedure shall:

151.1. Begin not later than on the day of submission of the Terminal User's Monthly Schedule draft regarding use of respective Terminal Capacities.

151.2. End not earlier than 1 (one) month after the day when respective Terminal Capacities were last used in a respective Gas Year.

152. Bank Guarantee to Secure the Validity of the Proposal set forth in clause 28.4 of the Regulations is returned to the Terminal User within 5 (five) working days:

152.1. Of signing or amendment of the Terminal User's Contract and Inter-Use Terminal Contract (whichever occurs last) if the Terminal User has submitted sufficient evidence prescribed by the Regulations that it is compliant with the Creditworthiness Requirements.

152.2. If the Operator refuses to conclude the Terminal User's Contract and/ or Inter-Use Terminal Contract due to no fault of the person submitting the Bank Guarantee to Secure the Validity of the Proposal.

153. Apart from the cases prescribed in the Terminal User's Contract, Regulations, or bank's guarantee the Operator has the right to demand payment based on Bank Guarantee to Secure Terminal User Obligations Fulfillment if:

153.1. The Terminal User has failed to fulfil any financial or other obligation under the Regulations or Terminal User's Contract.

153.2. The person submitting the guarantee securing fulfilment of the Terminal User's Contract obligations does not satisfy the requirements applicable to such a person under the Regulations and Terminal User's Contract and no guarantee complying with the requirements raised towards it is provided within 2 (two) working days from identification of such circumstances.

153.3. The term of validity of the guarantee submitted by the Terminal User who does not satisfy the Minimum Credit Rating ends within 20 (twenty) working days and no replacement guarantee has been submitted to the Operator.

154. Every time that the amount of the guarantee securing fulfilment of the Terminal User's Contract obligations calculated according to a formula provided in the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values changes, the Terminal User shall ensure that the guarantee is issued for the amount of not less than this calculated guarantee amount.

155. The Terminal User shall immediately inform the Operator if it does not satisfy the Creditworthiness Requirements, or has information that in the future it will not satisfy such


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requirements. In any case, the Operator has the right to demand that the Terminal User provide audited financial statements and other financial documents to the extent necessary to evaluate Terminal User's financial state.

156. Terminal User's non-compliance with the Creditworthiness Requirements, circumstances indicating insolvency of the Terminal User as well as circumstances indicating insolvency of the Parent Company and/ or group of companies or bank whose guarantee the Terminal User has submitted, if in the latter case the Creditworthiness Requirements are not satisfied otherwise within 5 (five) days, constitute an essential violation of the Terminal User's Contract and a reason for the Operator to stop implementation of any obligations towards such a Terminal User as well as unilaterally terminate the Terminal User's Contract.

7.10. Limitations or Termination of Terminal Services Provision

157. The Operator has the right to limit or terminate provision of Terminal Services according to the procedure and conditions set forth in the Regulations and legal acts having notified the Terminal User of such limitation or termination in accordance with the procedure and terms set forth in the Regulations and legal acts.

158. The Operator can limit or terminate provision of Terminal Services without any fault on behalf of the Terminal User thus seeking to ensure public interests and continuous, appropriate, and safe operation of the Terminal as well as in other cases specified in the legal acts, Regulations, Terminal User's Contract, and Inter-Use Terminal Contract, including but not limited to:

158.1. When this, according to the Operator's opinion, is justifiably necessary in order to avoid an emergency at the Terminal and/ or aboard an LNG Carrier as well as to protect people, environment, and/ or property from the hazard posed by force majeure, illegal actions of third parties and/ or emergencies, failures, or other technical malfunctions.

158.2. When this, according to the Operator's opinion, is justifiably necessary in order to avoid an extreme state that has accrued in the natural gas system of the Republic of Lithuania threatening system's functioning.

158.3. When this, according to the Operator's opinion, is justifiably necessary when performing planned Terminal Maintenance and/ or inspections in accordance with the procedure and conditions set forth in the Regulations.

158.4. In case of extreme conditions of Terminal operations as envisaged in the Operator's Technical Conditions (Regulations Annex No. 3) and in case of circumstances specified in clause 171 of the Regulations.

159. In cases specified in clauses 158.1, 158.2, and 158.4 of the Regulations as well as in other cases if there is an emergency, failure, or malfunction at the Terminal, LNG Carrier, and/ or related facilities the Operator has the right to immediately stop provision of Terminal Services to a Terminal User without a separate preliminary notice. In these cases the Operator shall without delay send a written notice to the Terminal User informing it as soon as possible about suspension of provision of the Terminal Services and specifying the reason, time, and duration of suspension of provision of the Terminal Services. Provision of Terminal Services resumes in accordance with the procedure and conditions set forth in the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract after respective circumstances have subsided or violations have been dealt with.

160. When limiting or terminating Terminal use in accordance with circumstances specified in clause 158.3 of the Regulations the Operator shall not later than within the terms specified in clause 166 of the Regulations send a written notice to the Terminal User specifying the reason, time, and duration of limitation or termination of Terminal use.

161. The Operator can limit or terminate Terminal use because of the Terminal User's and/ or its authorized persons' fault in cases provided in the legal acts, Regulations, Terminal User's Contract, and Inter-Use Terminal Contract, including but not limited to:

161.1. The Terminal User or owner or master of an LNG Carrier refuse to carry out inspection of the LNG Carrier and/ or delivered LNG or to provide conditions that would allow appropriate performance of said inspection in accordance with the procedure set forth in the Regulations.


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161.2. The quality of LNG delivered to the Terminal does not meet established requirements or the quality of handled LNG changes during unloading in a way that could impede normal functioning of the Terminal and/ or other related facilities.

161.3. The Terminal User fails to implement is obligation to make an appropriate and timely payment to the Operator for provided Terminal Services and also does not make mandatory payments, pay surcharges, penalties, and/ or does not compensate for the losses incurred by the Operator in accordance with the procedure and conditions set forth in the Contract.

162. When limiting or terminating Terminal use in accordance with circumstances specified in clauses 161.1 and 161.2 of the Regulations the Operator shall not later than 24 (twenty four) hours send a written notice to the Terminal User specifying the reason, time, and duration of limitation or termination of Terminal use. When it is impossible to exactly identify the time of notice to the Terminal User, the 24 (twenty four) hour period begins at 08:00 AM (EEST) on the day when the Terminal User was informed by the Operator about limitation or termination of Terminal use.

163. In the case specified in clause 161.3 of the Regulations as well as in other cases provided for in the legal acts, Regulations, and/ or Contract, when limiting or terminating Terminal use, the Operator shall send a written notice to the Terminal User 10 (ten) calendar days in advance, if no other terms of notification are appropriately specified in the legal acts, Regulations, and/ or Contract, specifying a term for elimination of violations that may not exceed 30 (thirty) calendar days and indicating the reason for limitation or termination of Terminal use. Should the Terminal User fail to eliminate violations over the term specified by the Operator, the Operator terminates provision of Terminal Services according to the Terminal User's Contract due to the fault of the Terminal User.

164. The Terminal User undertakes to apply all possible and justifiable means to avoid or minimize losses when provision of Terminal Services is being terminated, limited, or otherwise disrupted and to appropriately protect the LNG Carrier and other related facilities as well as to instruct its authorized persons to do likewise.

165. The Operator bears no responsibility for losses incurred by the Terminal User due to limitation or termination of Terminal use in accordance with the procedure and conditions set forth in the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract.

7.11. Maintenance Works

166. The Operator publicly informs the Terminal Users about planned Maintenance works according to the following terms:

166.1. Every year on the 4th of June (for the first year of Terminal operation, on the 1st of September) the Operator announces planned annual Maintenance works schedule and planned Terminal limitations for the period from the 1st of October of the current year to the 1st of October of the next year. Notwithstanding the provisions of clause 62 of the Regulations, up to the end of the term for Annual Schedule draft provision, the Terminal Users are entitled to refuse the Terminal Capacities allocated to them to the extent their Terminal Capacities are affected by planned annual Maintenance works schedule, announced by the Operator.

166.2. The Operator has the right to perform periodical dry docking not earlier than on the 23rd of March, 2019, announcing the intent to the Terminal Users in accordance with the procedure described in clause 166.1.

166.3. In April and/ or September of each year the Operator has the right to perform Maintenance works not introduced into the Maintenance works schedule, provided their total duration does not exceed 7 (seven) calendar days, having notified the Terminal Users no less than 85 (eighty five) calendar days in advance of commencement of such Maintenance works. If such Maintenance works coincide with LNG Carriers Arrival Periods specified in the approved Annual Schedule, the Operator shall have the right, upon receipt of the LNG Carriers Arrival Periods narrowed by Terminal Users under clause 71.2 of the Regulations, to specify the information about the Maintenance works not later than 45 (forty five) calendar days before the commencement of such Maintenance works, or exercise the right to adjust the LNG Carriers Arrival Periods stipulated in clause 73 of the Regulations.


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167. The Operator has the right to limit and/ or terminate Terminal use for the Terminal Users for a period and to extent that is related to the planned Maintenance works being performed.

168. The Operator shall inform the Terminal Users of unplanned Maintenance works immediately after learning of their necessity. Direct losses occurring because of performance of unplanned Maintenance works are accepted by the Operator or Terminal User (-s) depending on whose fault necessitated these Maintenance works, except from the cases where this necessity occurs through Force Majeure.

169. The Terminal Users shall take into account the Operator's planned Maintenance works schedule and unplanned Maintenance works being performed and shall diligently cooperate with the Operator and conform to the Maintenance works respectively by adjusting Annual and Monthly Schedules.

170. The Operator has the right to establish additional technical requirements for LNG Carriers and Terminal Users if it is necessary for performance of Maintenance works.

7.12. Force Majeure

171. The Operator and Terminal User are released from responsibility for not fulfilling the provisions of the Regulations and/ or Terminal User's Contract if they can prove that the Regulations and/ or Terminal User's Contract were not fulfilled because of circumstances outside of their control, which they could not have reasonably foreseen, and that they had no way of preventing these circumstances or their consequences from occurring. Predicted dangerous hydro-meteorological conditions that endanger the safety of the Terminal and/ or Port shall be also considered as Force Majeure circumstances. The Operator or Terminal User lacking necessary financial resources or violation of obligations by borrower's contractors are not considered to be Force Majeure circumstances.

172. Occurrence of Force Majeure circumstances shall be immediately reported to the Operator by phone and then by a written notice. Failure to report Force Majeure circumstances revokes the right to use them as a reason for release from responsibility for not fulfilling the Regulations. The Operator shall also be notified if the reason for not fulfilling obligations because of Force Majeure circumstances has ceased.

173. Upon expiry of Force Majeure circumstances it is necessary to immediately fulfil obligations that were not fulfilled before occurrence of Force Majeure Circumstances, unless agreed otherwise.

174. If the Terminal User does not fulfil the Regulations and/ or Terminal User's Contract and/ or Inter-Use Terminal Contract because of Force Majeure circumstances, the Operator has the right to change the Service Schedule to ensure appropriate operation of the Terminal. Upon expiry of Force Majeure circumstances the Service Schedule agreed by the Terminal User is applied if it is possible considering the adjusted Service Schedule.

175. The Terminal User shall pay for all ordered Terminal Services in accordance with the procedure set forth in the Regulations and Terminal User's Contract and also compensate for the expenses incurred by the Operator related to provision of Terminal Services upon expiry of Force Majeure circumstances.

176. The Operator or Terminal User can unilaterally terminate the Terminal User's Contract if Force Majeure circumstances last at least 3 (three) months.

8. Liability

177. The Terminal Users and Operator are liable for appropriate performance of the mandatory requirements established for them in the Regulations and obligations undertaken within the scope of the Terminal User's Contract. Liability of the Terminal Users and Operator may be limited or inapplicable only on the grounds established in the legal acts, Regulations, Terminal User's Contract, and Inter-Use Terminal Contract. These liability limitations do not limit the right of the Terminal User to receive the insurance benefits according to LNG insurance contracts, according to which the Terminal User is referred to as additionally insured.

178. The Operator is only liable for fulfilment of obligations provided for in the legal acts, Regulations, Terminal User's Contract, and Inter-Use Terminal Contract in accordance with the procedure specified in the legal acts, Regulations, and Contract. The Operator shall apply reasonable efforts


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for Terminal Users not to incur direct or indirect losses because of the Operator's or Terminal Users' actions and, if this is unavoidable, apply every reasonable effort to reduce the amount of these losses.

179. If the Operator's faulty actions violate the obligations set forth in the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract or applicable legal acts and due to such violation a Terminal User has sustained damages, the Operator, taking into consideration the applied liability limitations, compensates the Terminal User for only these direct losses experienced by such Terminal User:

179.1. Expenses, which are directly experienced by the Terminal User due to the Operator’s lateness and/ or inability to accept a Cargo according to the approved Service Schedule and/ or provide LNG regasification or reloading service;

179.2. Loss of assets, which the Terminal User experiences directly due to LNG and/ or natural gas loss because of the Operator’s fault.

180. The Operator does not bear any liability for indirect loss and/ or loss of indirect nature including but not limited to such cases:

180.1. If such loss emerges due to performance or termination of contracts or agreements with third parties by the Terminal User, due to which the expense for the Terminal User of purchase of goods, services or raw materials from third parties increases;

180.2. Earnings, income or profit (including any delayed payment or other benefit decrease) not received by the Terminal User are not compensated, lost investment opportunities, monetary value of the lost opportunity, decrease in asset value and any expenses related to peace agreements with third parties, legal and financial accounting service costs as well as any other expenses related to litigation are not compensated;

180.3. Fees and payments, which occur due to the obligations to pay lateness, penalty, forfeit fines, compensations or obligation fulfillment guarantees are not compensated to the Terminal User, if liability occurrence even if such obligations or guarantees had not existed is not proven.

180.4. The Terminal User is not compensated for non-pecuniary damages or reputation damage.

181. Compensation of losses experienced by the Terminal User is also limited to a maximum sum of 250,000 EUR for each case of violation due to the Operator’s faulty actions (maximum sum of 500,000 EUR per calendar year), except violations caused due to the Operator’s faulty actions specified in Clause 179.2 of the Regulations, loss compensation due to which is limited to a sum of 1,000,000 EUR for each case (maximum sum of 2,000 000 EUR per calendar year).

182. The Operator is not liable for actions or inaction of third parties limiting operation of the Terminal (including, but not limited to, operation of the natural gas Transmission System or operations undertake therein), unless the Terminal operation is limited due to FSRU Owner or General Contractors of the Terminal infrastructure involved by the Operator’s fault.

183. The Terminal Users are directly liable towards the Operator and third parties for the activities carried out and responsibilities undertaken related to the use of the Terminal.

184. If the Terminal User's faulty actions violate the obligations set forth in the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract or applicable legal acts and due to such violation the Operator has sustained damages, the Terminal User compensates the Operator for all direct losses if individual Regulations, Terminal User's Contract, Inter-Use Terminal Contract and/ or applicable legal acts provisions do not provide otherwise. The Terminal User must put reasonable effort, so that the Operator and other Terminal Users would not experience direct or indirect losses due to the actions of the Terminal User and if that is inevitable, put all reasonable effort to minimize such losses.

185. Unless otherwise provided in the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract or applicable legal acts, the Terminal User is not liable for compensation of indirect losses to the Operator, for example, for third party transactions that were not entered into or implemented, for penalties assigned by third parties, etc.


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186. Terminal Users compensate other Terminal Users, third parties, or properties for damages done through their action or inaction.

187. Terminal Users shall have insured their civil liability for damages incurred due to the Terminal User's actions while using the LNG Regasification Service and/ or LNG Reloading Service and otherwise using the Terminal up to the moment of supplying natural gas into the Transmission System or completion of LNG Reloading according to conditions provided for in the Terminal User's Contract throughout the entire period of validity of the Terminal User's Contract. The Operator does not provide any Terminal Services to Terminal Users who do not observe the requirement of this clause.

188. The Operator shall have insured the properties used in its activities and controlled (disposed) by the Operator as well as its civil liability according to conditions provided for in the Terminal User's Contract during the entire period of validity of the Terminal User's Contract.

189. The Operator can assign a penalty, constituting preliminarily agreed minimum losses, determined in accordance with the List of Formulas for Calculation of Terminal Services Prices, Taxes, Penalties and Obligation Security Values for violation of requirements stipulated in these Regulations, Terminal User's Contract, and Inter-Use Terminal Contract to a Terminal User who does not fulfil its mandatory Terminal use requirements or fulfils them inappropriately.

190. The Operator is not liable for shortage in Terminal User's natural gas calculated in accordance with the Operator's Natural Gas Accounting Policy (Annex No. 2 of the Regulations).

191. Shortages of a Terminal User's natural gas are allocated to Terminal Users in accordance with the Operator's Natural Gas Accounting Policy (Annex No. 2 of the Regulations).

192. In case of Force Majeure circumstances or other circumstances preventing the Terminal User and/ or Operator from appropriately fulfilling their obligation under the Contract, the party facing disruptions shall apply all reasonable efforts to eliminate the disruptions and ensure facility operations as soon as possible.

9. Information Exchange

9.1. Operational Cooperation

193. The Operator and Transmission System Operator cooperate in accordance with the requirements set forth in the Regulations for Use of the Natural Gas Transmission System and provisions of the cooperation agreement entered into by these operators.

194. The Operator publishes the following information on its internet website:

194.1. Regulations, including their annexes.

194.2. Information about allocation of the Terminal Capacities.

194.3. Information about allocated and free Terminal Capacities;

194.4. Service Schedule.

194.5. Information about the LNG level in the Terminal tanks, regasified natural gas quantity and reloaded LNG quantity for each day.

194.6. Approved LNG Carriers list at the Terminal.

194.7. Information about occurrence of circumstances and/ or conditions and their changes that might have an impact on availability of the Terminal for use by the Terminal Users.

194.8. Information about emergency situations and Force Majeure circumstances.

194.9. Link to the information published by the Transmission System Operator about established technical Transmission System Capacities at the point of connection of the Terminal to the main gas grid and minimum and maximum natural gas intake capacities of the Transmission System.

194.10. Terminal Maintenance works schedule.

194.11. ETSSAS access request form.


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194.12. Contract form of Permission to use ETSSAS.

194.13. Other information specified in the legal acts and Regulations.

195. The Operator provides Terminal Users with information related to the Terminal Services, including information about certain Terminal Capacities assigned to Terminal Users, payments, other individually applicable and/ or mandatory conditions of the Terminal use. Notices intended for Terminal Users are sent to the contact address (or addresses) specified in the Terminal User's Contract and/ or Inter-Use Terminal Contract.

196. Terminal Users submit to the Operator requests, notices, and information in accordance with the procedure and conditions specified in the legal acts and Regulations.

197. Terminal Users' and Operator’s requests, notices, and information shall be submitted in writing and delivered by fax or e-mail (except for the cases where Regulations specify submission of original documents). When ETSSAS will be implemented by the Operator, Terminal Users by signing a contract with the Operator for permission to use ETSSAS will have the possibility to provide and receive the information related to Service scheduling, forming orders, reporting and other related information electronically.

198. Requests, notices, and information are sent to the contact persons responsible for respective activities as specified in the Terminal User's Contract or on the Operator's internet website.

199. Requests, notices, and information are appropriately submitted in accordance with clause 197 of the Regulations if the Operator can justifiably believe that a respective requests, notices, or information have been submitted in the name of the Terminal User by a person appropriately authorized by the Terminal User. Data submitted electronically shall meet the requirements for transmitted information security.

200. Information exchange between the Operator and Terminal User are carried out in Lithuanian and/ or English languages unless otherwise provided in the Terminal User's Contract or Inter-Use Terminal Use Contract.

201. Documents intended for institutions of the Republic of Lithuania shall be drawn in the Lithuanian language or their translation into the Lithuanian language complying with the requirements set forth in the legal acts shall be provided.

202. The Operator and Terminal User inform each other without delay about any event or circumstances that might have an impact on appropriate fulfilment of the Regulations or Terminal User's Contract which must be reported according to the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract.

203. In case of occurrence or risk of occurrence of circumstances that raise hazards for an LNG Carrier or Cargo (e.g., stranding), human life, health, property, or environment, the Terminal User or its authorized person shall inform the Operator immediately after learning of such circumstances and at least every 4 (four) hours notify the Operator about changes in the situation by telephone, e-mail, and/ or fax until complete elimination of the hazard.

9.2. Confidentiality

204. Information related to the Terminal User's Contract is confidential, except for cases where legal acts specify an obligation to disclose such information. The Operator can provide the information to persons performing natural gas transmission operations to the extent necessary for fulfilment of the Regulations and Terminal User's Contract. Such disclosure of information is not held to be a violation of confidentiality.

10. Final Provisions

205. Claims and disputes regarding actions or inaction of the Operator and Terminal User when providing Terminal Services are settled by mutual agreement. Should this fail, they are considered according to the procedure of preliminary non-judicial consideration of claims and/ or in court according to the procedure and conditions established under the legal acts of the Republic of Lithuania.


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206. The Regulations and legal relations arising thereof are subject to the law of the Republic of Lithuania, except for the cases provided for in Annex No. 1 to the Operator's Technical Conditions (Annex No. 3 to the Regulations).

207. The Operator and Terminal User relations that are not regulated by the Regulations, Terminal User's Contract, and Inter-Use Terminal Contract are subject to the legal acts of the Republic of Lithuania.

208. The Operator prepares, accommodates, approves, changes and publishes the Regulations in accordance with the procedures and conditions set forth under the Requirements. Regulation conditions announced according to the procedure set forth in this clause automatically become binding to all Terminal Users from the date of their approval, unless stated otherwise in the Regulations or Legal Acts.

209. Procedures, document forms, and/ or other requirements specified in the Regulations are published on the Operator's internet website.

Date post:	28-May-2020
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