KN (AB “Klaipėdos Nafta”) is negotiating with UTE GNA I Geração de Energia S.A. (GNA) for the provision of operations and maintenance services in connection with GNA’S LNG Terminal, located in Porto do Açu (state of Rio de Janeiro), one of the main port complexes in Brazil, which offers a series of logistical solutions for the Brazilian oil and gas market.

KN would be participating in the project as the provider of LNG terminal services, which, in case of successful agreement, would involve its knowledge and competence to ensure flawless operations of the LNG terminal in Porto do Acu.

The project, developed by GNA, encompasses the implementation of two natural gas-fired combined-cycle thermoelectric plants with the combined capacity of around 3,000 MW and an FSRU-based LNG regasification terminal with a capacity of 21 million m3/day. More detailed information about the project is provided at www.gna.com.br

“We maintain our strategic direction and remain interested in the opportunities allowing to engage in perspective international LNG projects. It is a great acknowledgment of our competence and operational excellence, when they grant us invitations to participate in the international tenders. We hope that negotiations with GNA will be concluded successfully and our involvement in this project in Brazil will contribute to creating additional value both for our shareholders and clients”, - says Darius Šilenskis, acting CEO of KN.

According to D. Šilenskis, in order to be able to conclude the contract with GNA, certain preparations, connected with corporate governance procedures, on behalf both of KN and GNA will have to be carried out in advance. 

“Currently we are going through a very efficient negotiation process with GNA. Although it is early to predict when the agreement could be finalized, we make our best efforts to assure that all preparation works are carried out in advance, so that we could focus on the provision of the services right away, should the contract be concluded”, - says D. Šilenskis.

As negotiations are still ongoing, further information regarding the contract is considered confidential.
 
KN has already partnered with companies developing LNG projects in Latin America. In 2015 the company was awarded a consultancy tender in the Port of Cartagena, Colombia. KN team provided consultations on the technical conditions of the port and terminal operations, risk and security management, as well as training of key specialists and other assistance in the commissioning of the LNG terminal.
 

On Monday, Blue Baltics project, coordinated by KN (AB Klaipėdos Nafta), was awarded the prestigious award Energy Globe Award Lithuania 2019 for its positive impact on the environment. Blue Baltics project is the foundation for the creation of the liquefied natural gas (LNG) value chain and the promotion of the clean fuel use in shipping.
 
Energy Globe Award is considered to be one of the most prestigious environmental awards in the world, every year projects from 187 countries compete for it. This award is awarded to energy-efficient and pollution-reduction promoting projects that are recognized at regional, national, and global level.
 
Blue Baltics has brought together Lithuanian, Swedish, Estonian, and German businesses to promote the use of more sustainable maritime fuels in the Baltic Sea. The Baltic Sea is a major artery for passenger and freight transport, one of the busiest shipping channels in Europe, and ships are the main type of transportation. If ships are allowed to use cleaner and more sustainable fuels, businesses contribute not only to the competitiveness of the maritime economy, but also to the reduction of greenhouse gas emissions and negative climate changes.
 
During implementation of Blue Baltics project, launched in 2016, the LNG reloading station was built in Klaipėda, it allowed the port city to become the axis of LNG value chain and LNG distribution hub by linking four Baltic States into a single LNG value chain. Approximately EUR 15 million from the Motorways of the Sea Foundation were allocated for Blue Baltics project, of which EUR 4 million was allocated from KN. 

Ingrid Valentini-Wanka, Economic Advisor at the Austrian Embassy, awards Energy Globe Award Lithuania 2019 certificate to Arūnas Molis, Director of KN Klaipėda LNG service.

“KN together with its four partners have created a unique value chain that includes both the development of an environmentally friendly infrastructure of the LNG fuel and its distribution capabilities. Energy Globe Award is important and inspiring recognition for successful collaboration with partners in order to ensure the compliance with the strict environmental standards of the Baltic Sea. It is important to note that the small-scale LNG reloading infrastructure created in Klaipėda will benefit not only environmentally, but also be a significant link of the LNG value chain, its development provides for the development of additional operations, thus allowing to reduce Klaipėda LNG Terminal maintenance costs for all consumers of the gas”- says Arūnas Molis, head of KN Klaipėda LNG service.
 
The award aims to draw the attention to innovative solutions dedicated to the most pressing environmental issues - lack of resources, air and water pollution, erosion, and adverse climate changes. According to the founders of the award, this way the business is encouraged to focus on innovative solutions that can address environmental problems.

Commitment to implement sustainable operations and to continue investments in environmental protection remains the focus of KN (AB Klaipėdos Nafta). The company managed to receive the aid of EUR 200 000 for the installation of an air pollutant treatment plant at the Terminal of Klaipėdos Nafta. These funds will be allocated from the Lithuanian Environmental Investment Fund Program.
 
The new air pollutant treatment plant will treat volatile organic compounds (VOCs) and sulphur-containing compounds collected from the handling of existing petroleum products in the railway overpass.
 
Purchasing and installation of the necessary equipment will cost about EUR 0.5 million. About EUR 300 thousand will be allocated from the company budget, while the remaining EUR 200 thousand was received by submitting the application to the Environmental Projects Management Agency. The Agency decided to grant the funding to the Project from the funds of the Program of the Lithuanian Environmental Investment Fund. A funding and project supervision agreement will be signed between KN and the Environmental Projects Management Agency in the near future.
 
“We are confident that investing in the environmental protection is an indicator of a sustainable business, therefore we are consistently investing in environmental measures that support sustainable operations and ensure the highest environmental standards. We are pleased that this direction of our operations is sponsored and supported by the State, which has awarded a significant Grant for the implementation of an important facility at the terminal,” says Darius Šilenskis, Acting CEO of KN.
 
He notes that the KN consistently implements the Environmental Action Plan adopted at the end of the last year. In addition to the aforementioned VOC vapor collection and treatment equipment on the railways, there are also plans for VOC vapor collection and purification from the tanks of the black petroleum product fleet and from tanks of the new white petroleum product fleet. The plan also provides for the modernization of the Klaipėda Nafta Terminal boiler room and almost double the capacity of the VOC vapor incinerator by modernization the petroleum terminal quays.
 
It is estimated that by the end of 2021, KN’s investments in the field of environmental protection will reach 8 million euros. EUR 1.74 million of the anticipated amount has already been invested.
 
All equipment necessary for the modernization of the VOC vapor incinerator has already been purchased and delivered to the Company. A tender for the procurement of the installation works of this equipment will be announced in the near future. If everything will go as planed, the modernization of the VOC vapor incinerator should be completed by the end of this year or at the beginning of 2020.
 
Implementation of all measures specified in the Environmental Plan will reduce VOC concentration in residential areas adjacent to the company about 36 percent and the concentration of the odour will be reduced by 50 percent. - from the occasionally recorded 1 European odour unit to 0.5-0.3 unit.
 
The progress of Environmental Action Plan of Klaipėda Oil Terminal is updated every quarter and published on the company's website.
 
 

KN has extended its long-standing cooperation with BNK (UK) Limited, a subsidiary of the largest Belarusian oil exporter – ZAT Belaruskaja nonftenaya kampanija.
 
The agreement, which has been in force since 2016, has been extended for two years until December 31, 2021, with the possibility of further extension by separate agreement between the parties. Extension agreement between BNK and KN provides for handling of light and dark petroleum products produced at Belarusian refineries.

“The extended cooperation agreement with BNK is a significant achievement demonstrating that we are able to successfully maintain our competitiveness in the Baltic region, both through infrastructure investments and by keeping in mind the changing needs of our customers. The continued cooperation in the future allows us to expect handling of larger volumes of oil products than ever before,” emphasizes Darius Šilenskis, acting CEO of KN.
 
During the last 3.5 years, KN has invested almost EUR 45 million in the development of the infrastructure of Klaipėda oil terminal. According to Šilenskis, after implementing the investment plans, the KN oil terminal is one of the most powerful offshore oil terminals in the Baltic Sea region. At the moment, oil products can be unloaded from all means of transport or loaded into all means of transport at the KN oil terminal in Klaipėda.
 
KN has been working with partners in Belarus for more than ten years.