At the end of last year, oil and liquefied natural gas (LNG) terminal operator KN has successfully transhipped the first bulk bitumen from storage tanks to a tanker after commissioning of storage tanks for handling of a new product – bitumen. The principle of arranging the transhipment of bulk bitumen from storage tanks to a tanker is a novelty in the Port of Klaipėda.
 
The tanker BITHAV moored at the company’s berth was loaded with almost 5,000 t of bitumen, which is used in construction, road paving.
 
The project to convert KN’s existing tanks for bitumen loading has been under way for almost a year. This is how long it took for UAB Elektrėnų energetikos remontas, which was awarded the contract by KN, to reconstruct two oil product storage tanks and adapt them to bitumen handling. The contractor reconstructed 2 storage tanks of 4,200 m³ each at KN’s Klaipėda terminal and installed two product discharge pumps, which pump hot bitumen from tanker trucks in a closed way into the storage tanks and subsequent loading onto tankers. This is the new way of loading this product onto tankers in the Port of Klaipeda.
 
Already in autumn, having coordinated and obtained all the necessary environmental permits and prepared a detailed schedule, KN started the operations of the commissioning and adjustment of the bitumen storage tanks, followed by the commercial handling of bitumen.
The bitumen, which has a temperature of around 160–170 °C, was delivered to the KN-operated terminal by tanker trucks. The product was filled into the two refurbished, heated storage tanks and the stockpiled bitumen was successfully transhipped onto the tanker.

According to Mindaugas Navikas, KN Commercial Director, bitumen handling is one of the company’s planned investment projects to increase the efficiency and flexibility of the oil terminal in Klaipėda by adapting the existing infrastructure to the handling of new non-traditional oil and non-oil products. The reconstruction of one of the berths operated by KN is also nearing completion in cooperation with Klaipėda State Seaport Authority (KVJUD). Last year, new marine cargo handling equipment was delivered and its installation started.

“Our aim is to use the infrastructure of the KN Klaipėda Oil Terminal flexibly and to adapt it to the changing market conditions dictated by the reduction of cargo transit through the more traditional logistics chain, i.e. rail-tank-ship. We can see that the export / import window opened by KN is fully beneficial and attractive in terms of creating long term cooperative relationships between businesses operating in domestic and overseas markets. The start of bitumen handling, the new berth with ultra-modern handling equipment will enable us to meet the needs of existing customers, find new customers and guarantee the demand for both traditional oil products and non-traditional, specific cargoes,” comments M. Navikas.

The handling of oil products through KN infrastructure has evolved from 8 types of oil products at the beginning of 2021, to 13 different types of oil products, including 3 types of biofuels (RRME, ethanol, biodiesel), which are today being handled together with bitumen. In 2021, the terminal’s handling of the latter products increased significantly, with as much as 40 % more biofuels being handled in 2021 compared to 2020. In 2021, the total handling of tankers by KN also increased by around 9 %, i.e. a little more than 569, 000 t of oil products were transhipped.
 

The Supervisory Council of KN, the operator of liquefied natural gas (LNG) and oil terminals, has selected the members of the Management Board (hereinafter – the Board) for the new four-year term of office. There will be four independent members in the Board of KN, who are professionals in the areas of energy, finance, and management: Alfonso Moriello, Edvinas Katilius, Jūratė Lingienė and Guy Mason.
 
The new Board of KN will take up office from 25 April 2022, once the term of office of the current Board of KN ends. The Ministry of Energy will submit shortly a candidate for the position of a member of the KN Board delegated by the shareholder for the consideration of the Supervisory Council.
 
Edvinas Katilius is a high-level experienced executive with the proven track record to lead strategic change across large scale global organization, which turned out to be successful for the organisation both financially and in managerial sense. Mr. Katilius has been working at ‘Philip Morris‘ since 1999, where over his long career, he was responsible for business development and sales strategy in different regions of activity of the company, namely, Baltic States, Poland, Russia and Switzerland, where Katilius has been working as vice-president of PMI Global Duty Free since 2017.
 
Jūratė Lingienė has spent the majority of her professional career at SEB group in Lithuania, Latvia and Sweden, where she worked as a Head of Finance, also was responsible for the development of SEB Shared Service Centres in Lithuania and Latvia. She has also worked as CFO and member of the Board of SEB Latvia. Since 2015, ms. Lingienė has been working at SEB group as CFO for the Technology and Group Staff functions. Her responsibilities also include operational risk management in Technology organization.
 
Alfonso Moriello is a professional in the area of energy with a wide baggage of management experience, whose strengths are in transformation of business and activities, and business development. For the most part of his career, Mr. Moriello worked at the global energy and petrochemicals group ‚Royal Dutch Shell Plc.‘, as well as at the French start-up ‘Axegaz‘, which kick-started the development of the LNG refuelling station network in the country, as well as in other European countries. Moreover, Moriello has also contributed to innovative solutions in the area of biogas. The area of Moriello expertise covers international business transformation projects and business management by expanding the market and increasing generated revenue. Most recently, Mr. Moriello has been working at MAXCOM PETROLI S.p.A. as the member of the Board and LNG Managing Director.
 
Guy Mason is a highly experienced management professional who has held a number of senior management and Board positions during his 34-year career with BP, one of the world's largest oil and gas companies. From 2016 until 2020 Mr. Mason was appointed vice-president at this company, responsible for shipping in the global market. Competences of the new Board member cover business development and management, finance, commercial operations, and change management. In addition to shipping, he has contributed to renewable energy and LNG projects in the UK and other regions. During his solid career, Guy Mason has gained valuable experience in organisations implementing significant strategic and operating model changes to ensure sustainable financial performance and operational profitability.
 
Eimantas Kiudulas, the Chairman of the KN Supervisory Council, says that what all the selected members of the Board have in common, is their experience in working with organisations, which, due to internal or external circumstances, have to transform and orient themselves towards the development of new business areas in global markets, as well as seek innovation. These are the key challenges that KN currently faces.
 
“On behalf of the Supervisory Council, I am glad that we have so many strong candidates in a KN Board recruitment process, who, together with the company want to engage in business transformation. I am very happy about the team we have assembled, as the selected candidates have valuable experience, which is going to be useful in managing strategic challenges of the KN and laying foundations for sustainable future of the organisation”, says Mr. Kiudulas. 
 
In addition, Bjarke Pålsson, an independent member of the Board since 2017, has declared his wish to resign from the KN Board, 1 February 2022 being the last day of office, as he intends to concentrate more on own business, Mark & Wedell A/S. To ensure a smooth takeover of duties and the continuity of the activities of the KN Board, Edvinas Katilius has been appointed to the current Board of the company as of February 2, 2022 until the end of his term on 24 April 2022 and later will continue working with the new Board.
“Mr. Pålsson will enter the history of modern governance of Lithuanian state-owned enterprises as the first foreign citizen to serve as an independent board member. His work has contributed to the enhancement of the principles of good corporate governance, and his experience in the energy sector, including gas and oil, plus his financial background has been extremely valuable for the performance of KN Board. On behalf of KN Supervisory Council, I would like to express our gratitude to Mr. Pålsson for his contribution and engagement over the last five years and that he agreed to serve one extra year in addition to the original first 4 year period,” says Eimantas Kiudulas, Chairman of KN Supervisory Council.
Pursuant to the Articles of Association of KN, the Board of KN shall consist of 5 members, including the Chair of the Board, where at least at least 3 of them are independent members. The members of the Management Board are elected and recalled by the Supervisory Council for the period of 4 years. 
 

The Supervisory Council of KN, the operator of liquefied natural gas (LNG) and oil terminals, has elected Guy Mason as an independent member of the Board with effect on 1 December 2021.
 
Guy Mason is a highly experienced management professional who has held a number of senior management and Board positions during his 34-year career with BP, one of the world's largest oil and gas companies. From 2016 until 2020 Mr. Mason was appointed vice-president at this company, responsible for shipping in the global market
 
Competences of the new Board member cover business development and management, finance, commercial operations, and change management. In addition to shipping, he has contributed to renewable energy and LNG projects in the UK and other regions. During his solid career, Guy Mason has gained valuable experience in organisations implementing significant strategic and operating model changes to ensure sustainable financial performance and operational profitability.
 
Eimantas Kiudulas, the Chairman of KN Supervisory Council, stressed that the search for a candidate to join KN Board was aimed at finding a candidate with the competence and knowledge that could make a significant contribution to KN's transformation, as the company seeks to find new business markets and opportunities in the context of reduced petroleum product handling volume, as well as to meet the company's ambitious goals of international business development.
 
"KN is currently in an extraordinary situation: the company both needs to reorient itself towards new markets and, in the context of the global energy transformation, rethink its place in the value chain, to be able to seize the new opportunities, laying new solid foundations for the future.  The elected candidate has both extensive knowledge of the oil and gas business segment and a track record of delivering tangible results in managing business change. We believe that Guy Mason's competences will be of great value to the company and we are delighted that he is interested in this opportunity," - Mr. E. Kiudulas maintained.
 
According to the Articles of Association of KN, the Board of KN is composed of 5 members, including the Chairman of the Board, of which at least 3 must be independent members. Following the resignation of one of the independent members of the Board on 1 October 2021, the current KN Board is composed of four members: the Chairman of the Board, Giedrius Dusevičius, and members Mantas Bartuška, Dainius Bražiūnas, and Bjarke Pålsson.

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Please note that additional information on changes in KN Board can be found in the Nasdaq page: https://view.news.eu.nasdaq.com/view?id=ba09136d8a68161530ad9012bb81c46cf&lang=en

Since Gas Natural Açu (GNA) LNG-to-power project has launched commercial operations, KN became an operator of the two fully operational LNG terminals worldwide. The opening ceremony of the GNA LNG terminal and the GNA I thermal power plant celebrates significant milestone of the project for GNA, as well as for KN Açu Serviços de Terminal de GNL Ltda. (KN Açu), which is responsible for ensuring flawless operations of the fully functioning LNG import terminal in the Port of Açu, Brazil.
 
Natural gas-fired thermoelectric plant UTE GNA I (hereinafter – GNA I) is a USD 1 billion LNG-to-power project located at the Port of Açu, in the northern region of Rio de Janeiro. With 1,338 MW of installed capacity, enough to supply energy for 6 million households, GNA I will contribute to the energy security of the national system. In addition, the project includes a FSRU BW Magna, a 28 MMm3/day operational LNG floating storage regasification unit.
KN has been appointed as the operator of the LNG terminal in this project in 2020 with initial 13-year operational period term of the agreement, including a possibility of its extension upon mutual agreement. Since then, KN established local organisation KN Açu and provided extensive in-house training for local O&M team, the company role also comprised the development of O&M strategy and ISO compliant management system, other relevant operational and commercial processes such as terminal commercial rules, emergency response plan, hydrocarbon accounting system and other systems required for the operational phase of the terminal.
 
KN and KN Açu teams have jointly assisted GNA in launching commercial operation by providing extensive on-site and remote support during different project development phases including mechanical completion, pre-commissioning and commissioning stages including functional and performance testing of the terminal. Furthermore, assistance was provided in LNG terminal's readiness audits before major project start-up milestones such as hydrocarbon introduction to the terminal, FSRU arrival, gas send-out operations and similar.
 
„It is a great pleasure for KN to witness one of the most significant achievements in the recent Brazilian energy sector development and a historic moment for our long-term partner GNA. We are honoured to have a possibility to contribute to this important milestone of a very complex project by our global in-depth expertise and know-how in LNG terminal operational capabilities. Also, I would like to express my gratitude for the tireless professionalism and determination of KN and KN Açu teams, who are committed to ensuring long-term functions of safe and reliable LNG terminal operations trusted to us“, says Darius Šilenskis, CEO of KN.
“We have reached a significant milestone in implementation of GNA I project and today is a good day to celebrate the joint efforts of everyone involved. We are grateful for the expertise and competence brought by KN into the project, and we are confident that KN will further maintain high safety and goal-oriented performance”, says Bernardo Perseke, CEO of GNA.
 
About KN
KN is among the very few companies worldwide with experience of successfully commissioning floating LNG import terminals on two continents (Europe and South America), also achieving several worlds “firsts” and commercial innovation in the industry, including multi-user mode, virtual LNG swaps, continuous small-scale reloads and FSRU integration with onshore truck loading infrastructure.
 
Besides being operator of LNG terminal in Port of Açu, KN is owner and operator of Klaipėda LNG terminal based on FSRU “Independence” since 2014 as well as the onshore LNG reloading station, which is part of the LNG value chain in the Baltic region. Furthermore, KN also partnered up with companies developing LNG projects in South America in 2015-2016, when the company supported the construction and commissioning of the LNG terminal in the Port of Cartagena, Colombia.
 
About GNA
GNA - Gás Natural Açu is a joint venture formed among Prumo Logística, BP and Siemens, which is dedicated to the development, implementation and operation of sustainable and structuring energy and gas projects. The company is building in Port of Açu, Rio de Janeiro, the largest LNG-to-power complex in Latin America. Currently, the project includes the development of two natural gas-fired thermoelectric plants (GNA I and GNA II), which together, will achieve 3 GW of installed capacity, enough to supply energy for up to 14 million households, as well as an LNG regasification terminal. More information on the GNA project is available on the company's website at www.gna.com.br