Operations of Klaipėda liquefied natural gas (LNG) terminal will be temporarily suspended from 07:00 on 26 September to 07:00 on 30 September due to the scheduled annual equipment maintenance and repair works. During this period, Lithuania will be supplied with natural gas through the Lithuanian-Polish gas pipeline interconnector GIPL and from the Inčukalnis underground gas storage facility in Latvia.   During the scheduled maintenance and repair works, the entire infrastructure of the LNG terminal will be inspected, including the FSRU “Independence”, the terminal jetty and its equipment, the gas transmission pipeline facilities, and the gas metering station (in Kiškėnai village) from which the natural gas is transmitted to the natural gas transmission system. Maintenance works will be performed by KN (AB Klaipėdos nafta) employees, as well as Lithuanian and international contractors. "The LNG terminal is a technological installation that requires regular maintenance and servicing. We aim to maximise the volume of scheduled works and to carry them out accurately and expeditiously, restoring the gas supply as soon as possible," comments Dainius Čiuta, Chief Operations Officer of KN.   The KN-operated LNG terminal in Klaipėda is temporarily shut down every year for scheduled maintenance works. Information on planned works is provided in publicly available schedules.   Once the LNG terminal resumes normal operations, the next LNG cargo is expected in Klaipėda on 1st October.   FSRU “Independence” is scheduled for an inspection and refit at the shipyard next spring. During it, the underwater section of the vessel will be inspected and repair work, which cannot be carried out without raising the vessel from the water, will be conducted.   Since the size of the storage-vessel “Independence” requires a large dock, which is not available in Klaipėda and neighbouring ports, the vessel will be sent to one of the southwestern European ports. For the maintenance and repair work approximately 25 days are planned. Taking into account the duration of the journey and the estimated scope of work, it is it is tentatively estimated that the FSRU “Independence” will not perform regasification for about one and a half month in 2024. Market participants and clients of the LNG terminal are informed about the scheduled timeline.

This week, Klaipėda hosts the international liquefied natural gas (LNG) terminal market event "European LNG Terminal Managers Meeting 2023". "Klaipėdos Nafta" (KN) was entrusted with the organisation of this year’s annual conference, which is held in a different country each year. Representatives from 13 countries participating in the event, which brings together floating and onshore LNG terminal operators, engineers, and technical experts to discuss the latest developments in the sector and to share knowledge and experience.   "Lithuania was one of the first countries in Europe to use LNG solutions to secure its energy security and to give strategic importance to this area of energy supply. Last year, Lithuania was one of the first countries in Europe to refuse any Russian gas imports, thanks to timely decisions, and the Klaipėda LNG terminal is now operating at almost maximum technological capacity. Our case and experience in developing the necessary LNG infrastructure is undoubtedly of interest to many representatives in the sector. At the same time, we are constantly striving to improve our own operational processes and adopt best market practices to increase the sustainability and efficiency of our operations, therefore, as every year, it will be very interesting to hear the insights of foreign colleagues and partners, as well as sharing our own,"  says Rimas Rusinas, Head of KN LNG Terminal operations.   Klaipėda welcomed guests from Belgium, France, Great Britain, Norway, Croatia, Italy and other European states with LNG terminals. Dainius Čiuta, KN Chief Operations Officer, underlines the importance of the first European LNG managers event in Lithuania. "In addition to the opportunities to build knowledge and competence, it is also a great chance to connect and develop international partnerships, which are a major focus for KN. One of the company's most recent and long-term strategic goals is international business development, taking advantage of the global market opportunities and the accumulated experience,” says D. Čiuta.   Representatives of companies from Croatia and Italy, who cooperate with KN in the development of LNG terminals, are also taking part in the meeting of European terminal managers in Klaipėda, and the LNG infrastructure in Klaipėda will be presented by "Hoegh LNG Klaipėda". The meeting between European terminal managers is not the only international event on LNG organised by KN. The company also contributes to the organization of the “Baltic LNG & Gas Forum“. The latter event brings together energy sector representatives, decision-makers and experts from all over the world.   KN is a company of strategic importance to Lithuania, ensuring the energy security of the country and the region. At the moment, KN has contributed to more than 10 different LNG projects around the world and is currently operating LNG terminals in Lithuania and Brazil while providing commercial operation services for two floating LNG terminals in Germany.

Klaipėdos Nafta (KN), Klaipėda LNG Terminal Operator, will offer the market 9 TWh of the LNG terminal regasification capacities for the period from 2025 to 2032 (inclusive) and from 2033 onwards. Booking long-term regasification capacities ensures long-term occupancy of the LNG terminal and reduces its maintenance costs. The capacity allocation procedure begins on the 15 th of September. "Russian invasion of Ukraine caused an energy crisis, due to which the demand for natural gas increased to unprecedented heights not only in Lithuania, but also in the entire European Union (EU). The changes related to the European Green Deal also increase the demand for LNG in the Community. By the way, operation of additional infrastructure started in Lithuania, helping to meet this need: last year, the Gas Interconnection Poland-Lithuania (GIPL) was completed, and the capacity of the gas pipeline between Latvia and Lithuania was also significantly increased. Therefore, there are technical possibilities to supply more gas to a larger number of customers from the Klaipėda LNG terminal. As a result, we are recording considerable interest in the capacities of our terminal," comments Mindaugas Navikas, Chief Commercial Officer of KN. The National Energy Regulatory Council approved the updated allocation model at the end of July. It envisages the possibility of booking an additional 9 TWh of regasification capacity annually from 2025 to 2032 (inclusive). These capacities will be allocated in 3 lots of 3 TWh each. Higher capacities – up to 28 TWh – are intended to be offered for the period from 2033 to 2044. They will be divided into 7 lots of 4 TWh each. It Will Ensure Occupancy and Lower Maintenance Costs of the Terminal According to Mr. Navikas, the energy transformation currently taking place in the EU encourages more and more companies to look for stable and long-term natural gas supply solutions. "Considering the changes, we will give the market participants the opportunity to book capacities from 2033 as well. In this way, companies planning a long-term perspective will be able to secure stable access to infrastructure, take advantage of long-term contracts to purchase natural gas at more favourable prices, and reduce the uncertainty of the operating environment," says KN's Chief Commercial Officer. KN receives inquiries both from market participants located in our region (Latvia, Estonia, Finland, Poland), and from market participants located further away (the Czech Republic, Ukraine, Norway), or from world-class natural gas trading companies. Therefore, there is no doubt that the capacity allocation procedure, especially for capacity allocation until 2032, will be competitive. "Our goal is to ensure that the LNG terminal operates at full capacity in the long term. The higher is the occupancy of the terminal, the lower are its maintenance costs, because every company using the terminal pays a fee for the regasification service," tells Mr. Navikas. Fifty Percent of Revenue Comes from Foreign Customers The annual allocated capacity of the LNG Terminal is 32-34 TWh, of which 24 TWh has already been reserved for the period from 2023 to 2032 (inclusive). Another 9 TWh will be allocated shortly through the terminal capacity allocation procedure. Part of the capacity, as before, is left for spot cargoes. During the procedure, market participants will have the opportunity to book capacities from 2033 onwards – up to 28 TWh is expected to be allocated for this. The Klaipėda LNG Terminal is the main channel for natural gas entering Lithuania. By allocating long-term capacities, KN ensures that market participants will use not only the terminal, but also the natural gas transmission infrastructure in Lithuania. Part of the imported natural gas is allocated to the needs of Lithuania: domestic consumers and companies, part goes to other European countries or is stored in the Inčukalns underground gas storage in Latvia. Each company using an LNG terminal pays a regasification service fee. As a result, the LNG Terminal is earning about 50 percent of its revenue from foreign customers this year. If the long-term allocation of capacity is ensured at that time, the part of the LNG terminal operating costs is equal to zero in the security supplement paid by natural gas consumers in Lithuania. A long-term capacity allocation model should allow such pricing to continue.

AB Klaipedos nafta as LNG Terminal Operator (hereinafter – the Operator), in order to ensure efficient allocation of Terminal capacity and to grant market participants the right to acquire LNG Terminal capacity on a long-term basis, announces this Invitation to participate in the Klaipeda LNG Terminal Long-term Capacity Allocation Procedure, during which LNG regasification capacities are allocated for the period from 2025 January 1 until 2033 on January 1, total 9,000,000,000 kWh (3 packages of 3,000,000,000 kWh each) in each consecutive Terminal gas year and for the period from 2033 January 1 until 2045 on January 1, total 28,000,000,000 kWh (7 packages of 4,000,000,000 kWh each) in each consecutive Terminal gas year. Invitation consists of the main conditions for long-term terminal capacity booking and all other information necessary for proper execution of orders. Applications for Long-term LNG regasification capacity are accepted from September 15, 2023, at 13:00 EEST until October 5, 2023, at 13:00 EEST. Find more information here . 

The floating storage and regasification unit (FSRU) Independence of the Klaipėda liquefied natural gas (LNG) terminal, strategically important for the country, will become the property of Lithuania next year and will be flying Lithuanian tricolor. With the results of the public tender announced, once Klaipėdos nafta (KN) becomes owner of the FSRU, Norwegian capital company Hoegh LNG Klaipėda will serve as its technical operator for a minimum of 5 years. This company belongs to the Hoegh LNG group, which is the current owner of the Independence and has been taking care of its operation and technical maintenance since 2014.     The tender for the technical operator of the Independence announced by KN is one of the milestones that will allow to ensure safem reliable and smooth operation of the terminal after Independence becomes the property of Lithuania. In total three international shipping companies that passed the initial selection stage participated in the tender: Hoegh LNG Klaipėda, Wilhelmsen Ship Management, and Mitsui O.S.K. Lines.     The bid of Hoegh LNG Klaipėda met the requirements, the most important of which are the price and quality of the service, the best. This large-scale and complex procurement was overseen by the Public Procurement Service, and applications of the participants were evaluated by experts from KN, technical consultant DNV, and the Lithuanian Transport Safety Administration. The agreement with the tender winner is signed for five years. A possibility to extend it for the same period is foreseen as well.     Terminal management costs will decrease by one third   Until now, the share of the operator’s services was included in the total price of the time charter party agreement price. After FSRU Independence becomes the property of Lithuania, the services will need to be purchased separately. It is estimated that after taking over of the FSRU, the total annual terminal costs will be approximately by one third lower than if the lease is extended under the terms of the current agreement.    It is anticipated that the operating costs of the FSRU will consist of fixed and variable parts. About a third of the amount, i. e. 4.85 million EUR per year, will be a fixed part: vessel management fee and crew costs, excluding taxes applicable in Lithuania. Variable costs will depend on the FSRU need for repairs, regasification volumes and the price of emission permits directly related to them, as well as other components.       The Lithuanian flag will be raised on the vessel     “Klaipėda LNG terminal is strategically important for the energy security of both Lithuania and the Baltic States, it is the main regional alternative to the import of Russian natural gas. This became especially important after Russia’s large-scale invasion of Ukraine. The tender that we announced attracted a lot of interest, which ensured the competitiveness of the bids and allowed us to choose the most favourable option for Lithuania”, says Darius Šilenskis, the CEO of KN.    According to him, it is also important that the operator, who won the tender, will maintain the vessel, which will be flying the flag of Lithuania. Once the FSRU Independence becomes the property of the country, the FSRU will be registered in the Register of Seagoing Ships of the Republic of Lithuania and will be subject to the local legislation, and all taxes from salaries of sailors will supplement the country’s budget.    It is estimated that the alternative to the import of natural gas created by the terminal allows Lithuania to save about 140-150 million euros annually (without the cost of the terminal upkeep).    The winner of the tender manages 10 FSRUs     KN shareholders approved of the acquisition of the FSRU Independence from Hoegh LNG in February 2022. FSRU will become the property of Lithuania at the end of next year.    Hoegh LNG Group, which also includes the tender winner Hoegh LNG Klaipėda, is one of the pioneers of marine energy infrastructure. The company manages and operates floating LNG terminals that help ensure energy security at the national and regional level.     The company operates in Norway, Germany, Lithuania, United Kingdom, USA, Singapore, Indonesia, Egypt, Colombia, Brazil, and the Philippines, currently has around 900 employees, and manages 13 vessels: 10 FSRUs and 3 LNG carriers.