Sep 3, 2026
The carbon dioxide (CO₂) terminal planned by state-controlled oil and liquefied natural gas (LNG) terminal operator KN Energies has been recognised as part of the energy system.
On Wednesday, the Lithuanian Government approved a proposal by the Lithuanian Ministry of Energy to grant the project the status of an energy facility, providing legal clarity on how the terminal should be operated and maintained.
“Currently, legislation does not regulate a carbon dioxide terminal and its infrastructure as part of our energy system. The proposed amendments would, for the first time in our legislation, establish the legal framework for a carbon dioxide terminal as part of the carbon system and define requirements for its technical supervision,” Minister of Energy Lukas Savickas said at the Government meeting.
According to him, the terminal is necessary to achieve strategic objectives related to climate change, energy transition and industrial competitiveness.
According to the Ministry, recognising the terminal as part of the energy system will create the legal conditions for the development of a CO₂ capture and transport market in Lithuania and provide the country with an opportunity to become a regional CO₂ logistics hub.
“It is appropriate to recognise the terminal as an energy facility of national importance, as its infrastructure is essential for achieving Lithuania’s strategic objectives related to climate change, energy transition and industrial competitiveness. The carbon dioxide terminal will enable industrial companies operating in Lithuania to reduce emissions and maintain continuity of operations under the European Union’s climate policy framework,” the Ministry states in the explanatory memorandum.
Following the Government’s approval, the amendments to the Law on Energy will be submitted to the Seimas (Lithuanian Parliament).
As previously reported, from 2037 the terminal is expected to handle more than 16 million tonnes of CO₂ emissions from Lithuania’s cement industry (0.8 million tonnes per year).
Once the project is implemented, Lithuania would become the first Baltic country to have a complete CO₂ capture and transport system. In May this year, the Government already recognised it as a project of national importance.
According to the Ministry, the terminal will enable Lithuanian industry to reduce emissions without relocating production to other countries, thereby preserving its competitiveness, while also reducing dependence on fluctuations in emission allowance prices. The project will also help address the challenges of climate change and emission reduction.
