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 
 

By Mindaugas Navikas, KN Chief Sales Officer

Today, on October 1^st, the new 2022 gas year of the liquefied natural gas (LNG) terminal operated by KN (AB Klaipėdos nafta) begins with 6 terminal users from Lithuania and foreign countries who booked LNG terminal’s capacities (totally 8 TWh) and 17 LNG carriers to be received. We see this as a good indicator, given that, as part of the global gas market, Klaipėda LNG terminal inevitably falls into the whirlpool of trends in this huge market, caused by record high gas prices.
 
The change in natural gas prices, comparing several years in a row, is really striking in October 2018 the price of gas in Europe (TTF index) amounted to EUR 27.79 per megawatt-hour (Eur / MWh), in October 2019 – 12.86 Eur/MWh, in 2020 – 11.33 Eur / MWh, today it jumped to 63.42 Eur/MWh. Although this year is characterized by several times higher natural gas prices worldwide, the utilization rate of Klaipeda LNG terminal in natural gas (NG) year* 2021 remained high and reached about 42 percent (in NG year 2020 – almost 54%).
 
Looking at the previous NG year (2021), totally 74 (72 loading and 2 reloading) operations were performed at the Klaipėda LNG terminal, almost as much as in NG year 2020 (74 loading and 1 reloading operations). Last gas year LNG terminal received cargoes mainly from 4 different liquefaction plants in the U.S. Totally over 3 million cubic meters of LNG was delivered during this period (3.5 million cubic meters in the NG year 2020). We also received LNG cargo from Egypt, which, after an 8-year hiatus, resumed operations at the Damietta LNG liquefaction plant and, together with the Idku plant, exports LNG. During the NG year 2021, a total of 19.8 TWh was regasified and supplied to Lithuanian natural gas grid (23.9 TWh in the NG year 2020).
 
Comparing Klaipėda LNG terminal‘s performance to other terminals operating in Europe and assessing the calendar year, we can state that utilization rate of Klaipeda and other European LNG terminals are correlated: the average utilization rate of European LNG terminals is 38% (table attached).
 
We can only predict what the statistics for this gas year will actually look like, but at the moment it is not so easy even for the gas market experts. So what is happening on the map of natural gas supply and demand?
 
It is clear that Europe and the rest of the world are paying record-high prices for energy, not just natural gas, and some experts and analysts are hinting at a possible winter crisis: if temperatures fell sharply, demand for natural gas used for heating would rise more, yet natural gas levels of gas storage facilities around Europe is below the average of the last few years.
The cold winter and spring of this year have already depleted Europe's natural gas storage reserves, which were expected to be filled during the summer, but was delayed with a hope that gas prices would fall or start to stabilize. However, the reality is that instead of expectation of stabilized gas prices, they have continued rising.
 
The demand for natural gas this year is huge also because it is the most energy-balancing fuel, and LNG is also the cleanest fossil fuel. Countries transitioning from coal to more sustainable fuels, such as China, Japan and South Korea, garbs the biggest share of the LNG market, leaving smaller markets to "starve". Due to the global shortage of gas supply, Asia and Europe began to compete with each other, which inevitably affected the price of gas. The shortage of electricity in South America has also increased the competition for gas on this continent. The global economy is gas-hungry and recovering from a coronavirus pandemic. Russia's political card for the Nord Stream 2 project and the reduction of natural gas supplies to Europe are also not in the last place.
 
All these reasons and trends also affect the activities of Klaipėda LNG terminal and its users, but in such market conditions, it is worth remembering that Lithuania have the opportunity to import gas at a competitive price at any time. Therefore, even in this period of supply and demand turbulence, influenced by objective market factors, the LNG terminal remains a guarantor of energy security. If Lithuania had not diversified gas import sources in 2014 and built an LNG terminal, we would not have that choice. Competitive gas prices are a very important, but still not the only effect of LNG import infrastructure in Klaipeda.
 
It is also important to emphasize that the costs of maintaining the LNG terminal infrastructure do not change due to the rising prices of natural gas, and the maintenance of the terminal is not getting more expensive for natural gas consumers. For example, the cost of an LNG terminal (KN’s share in the so called ‘security supplement’) in the natural gas price for the end users, consuming up to 300 cubic meters of natural gas per year, accounts for only 1.5 percent. It is only 0.05 Eur/cubic meter (2021 I half).
 
* Natural gas year lasts from October 1^st, 2021 until September 30^th, 2022.
Utilization rate of the European terminals (%)
 

LNG terminal, country	2017	2018	2019	2020	YTD 2021*
Zeebruge, BE	7%	17%	45%	29%	23%
Swinoujscie, PL	31%	50%	61%	67%	68%
Sines, PT	55%	59%	85%	81%	83%
Revithoussa, GR	21%	15%	34%	33%	25%
Montoir-de-Bretagne, FR	23%	33%	67%	68%	45%
Dunkirk, FR	5%	8%	39%	24%	30%
Fos Tonkin, FR	59%	44%	58%	49%	40%
Fos Cavaou, FR	41%	45%	50%	43%	49%
Klaipeda, LT	28%	20%	44%	49%	40%
Gate, NL	5%	18%	50%	46%	44%
Panigaglia, IT	15%	21%	59%	61%	35%
Toscana, IT	16%	20%	64%	57%	34%
Sagunto, ES	19%	1%	22%	18%	17%
Mugardos, ES	28%	28%	34%	51%	54%
Huelva, ES	33%	31%	38%	34%	25%
Cartagena, ES	5%	4%	13%	24%	18%
Bilbao, ES	36%	39%	74%	71%	47%
Barcelona, ES	29%	26%	30%	22%	14%
Krk, CR	n/a	n/a	n/a	n/a	56%
South Hook, UK	22%	11%	43%	46%	23%
Grain, UK	4%	12%	27%	24%	25%
Vidutinis	24%	25%	47%	45%	38%
According to GIE ALSI data.

KN Supervisory Board  of AB “Klaipėdos nafta” (KN) announces selection of four candidates for independent members of the Management Board in these areas:

• Financial and risk management area.
• Strategic management, change and transformation area.
• Business development and international expansion area.
• The industry in which the Company operates area.

Each Board member should devote sufficient time and attention to perform the duties of the member of the Board. A board member should be able to appoint at least 2-3 days and a chairman at least 3-4 days a month.
Fixed remuneration of a member of the Board per calendar month is EUR 2,095 (before taxes), the chair of the Board receives EUR 2,400 per calendar month (before tax). Remuneration is set as per Company’s remuneration policy.

We invite you to be part of the history in energy field and Bridge Energy Markets together with KN.
 

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Requirements for candidates:

• General requirements for candidates of independent Board members and requirements for their reputation:
  1. A candidate must have a university degree or equivalent education.
  2. A candidate shall have unlimited and not deprived right to perform respective duties and functions assigned to those duties.
  3. During the last 5 years, a Candidate has not been dismissed from the body of a legal entity due to improper performance of duties.
  4. There must be no relations with other natural and legal persons that would give a rise to conflict of interest in the performance of the duties of an independent member of the Board.
  5. There should be no circumstances, established in Section 5 of the Republic of Lithuania Law on the Adjustment of Public and Private Interests in the Public Service, due to which the candidate of independent member of the Board should be unable to work as a manager of state-owned enterprise or be a member of a collegial body.
  6. There should be no circumstances, established in Article 17 of the Republic of Lithuania Law on the Protection of Objects of Importance to Ensuring National Security, due to which the candidate of independent members of the Board should be unable to be appointed as a member of the Board of the Company.
  7. A person, for whom his or her criminal record for any criminal offense has not become extinct, may not be considered as a candidate.
  8. A person, whose authority to represent the State or municipality over the last 5 years has been cancelled due to improper representation, cannot be considered as a candidate for independent member of the Board.
  9. The candidate must meet the specific requirements of its decision of the selection initiating entity (the Supervisory Board).
• Members of the Supervisory Board of the Company and other persons, who in accordance with the legislation in force cannot perform the duties, cannot be appointed as the members of the Board.
• A member of the Board is considered as independent only in cases when he/she is not associated with the Company, its shareholders or administration by any business, family, or other relationships, which are or may give rise to a conflict of interest and may affect the reputation of the Board member. The candidate for independent members of the Board shall comply with the criteria set out in the description of the procedure for the implementation of property and non-property rights of the state in state-owned enterprises.
•  The criteria of requirements of impeccable reputation and independence, as well as the criteria of requirements of integrity are provided in the Declaration of impeccable reputation and independence of candidates to the independent members of the Board of Joint-stock Company “Klaipėdos Nafta”  and Candidate's application for the selection and declaration of integrity .

 
Qualifications and competency requirements for candidates of independent members of the Board:

1. While evaluating candidates to independent members of the Board, the priority shall be given to the candidates who can best contribute to the implementation of the company's strategic goals and the need to ensure that all the necessary competencies are ensured for the quality of the Board's activities, considering the responsibilities and decisions of the Board.
2. The requirements of special competences are established to the Board’s area of competence, specified in the Articles of Association of the Company, in a way to ensure the formation of competences of the Board, established in the Law on Companies of the Republic of Lithuania and Articles of Association.
3. The competences of candidates to independent members of the Board must be in line with main areas of responsibility of the Board.
4. A matrix of qualification requirements and competences for candidates to independent members of the Board was concluded, based on which detailed mandatory and additional qualification requirements for the candidates for each area are established, in accordance with the areas of competence of the Board.

 
Participation in the selection process. The candidates shall submit documents by September 20, 2021 by e-mailing Executive Search agency UAB “J. Friisberg & Partners” vilniuscv@friisberg.lt  with the subject “KN Board Member”. Contact phone for inquiry Nijole Kelpsaite, phone No +370 699 43033.
 
Candidates must submit:

1. The candidate’s curriculum vitae (CV).
2. Motivational Letter.
3. A copy of an Identity document.
4. Copies of Diploma of higher education.
5. Signed candidate’s Declaration of impeccable reputation and independence (Annex 1).
6. Signed Candidate’s application for participation in the selection and the declaration of integrity (Annex 2).

 
Enclosed:

• Description of selection for independent management board members of KN
• Annex 1. Declaration of impeccable reputation and independence of a candidate for KN
• Annex 2. Candidate's application for selection and declaration of integrity
• Annex 3. Profile (matrix) of the Board’s competences
• Annex 4. Action plan for selection of independant management board members of KN

On August 16th, Mindaugas Kvekšas took over the position of Chief Financial Officer of KN, the operator of oil and liquefied natural gas (LNG) terminals.
 
Mindaugas Kvekšas gained experience in the field of finance while working for ‘KPMG Baltics’ and 'AB Ignitis gamyba’. He also served as a member of the Board of ‘UAB Verslo Aptarnavimo Centras’, ‘AB Ignitis gamyba’, ‘UAB Ignitis grupė paslaugų centras’, and currently holds the position of an independent member of the Board of ‘SĮ Vilniaus atliekų sistemos administratorius (VASA)’.

‘I am happy to have Mindaugas Kvekšas join the KN team. His competencies, as well as strong experience in corporate governance and financial management of a listed company will be extremely valuable to the company setting itself ambitious international development goals, seeking new business opportunities in the logistics chains of more sustainable energy and fuel values and implementing strategic projects, such as securing long-term LNG supply in Lithuania’, says Darius Šilenskis, CEO of KN.
 
Mindaugas Kvekšas’ competencies include strategic and financial planning, management and control, as well as management of financial compliance, internal control and risks.
 
Mindaugas Kvekšas fostered his financial competencies at the Stockholm School of Economics in Riga, and has also completed a training program for professional board members run by the Baltic Institute of Corporate Governance.
 
‘To me as an outsider, KN made an impression of an experienced, competent and ambitious team of professionals. The new challenges faced by the company and the opportunity to share my expertise and gain interesting experience from the KN team are the main reasons why I decided to join KN’, says Mindaugas Kvekšas, the new Chief Financial Officer of KN.