The European Investment Bank announced today that it would make investments on Lithuania. The country's plans to create a liquefied natural gas terminal were given financial support worth over US$111 million by the EIB.

The investment bank will be placing the investment loan on Klaipedos Nafto, a Lithuanian energy firm, to construct and operate a liquefied natural gas importing facility. The location of the plant is in Klaipeda in the northern region of the country.

In a statement released by the European Investment Bank, they said "This investment is critical for Lithuania to diversify and secure its energy supply as well as provide backup in the event of gas supply failures."

Pim Van Ballekom, Vice President of the EIB said that the creation of an LNG site in Lithuania is a welcome boost to the country's energy sector. Competition will be more prominent and the supply of energy will be constant, he added.

Currently, Russia holds a tight grip on the energy market in all of Europe. Lithuania's venture into this sector opens the door for other Eastern European economies to follow suit,