News
2023-06-29
Information on the planned launch of LNG terminal annual LNG regasification capacity allocation procedure
Klaipėda LNG Terminal Operator (hereinafter - “Company”) informs natural gas market participants about the planned announcement of the commencement of allocation of LNG Terminal annual LNG regasification capacity on the 6th of July 2023.
Taking into account the provisions of the approved Regulations, the Company informs about the planned announcement of the invitation to submit applications for the acquisition of LNG Terminal annual LNG regasification capacity.
Taking into account the provisions of the approved Regulations, the Company informs about the planned announcement of the invitation to submit applications for the acquisition of LNG Terminal annual LNG regasification capacity.
- Start date of annual LNG regasification capacity allocation: 6th July 2023.
- The opening date and time for submissions: 6th July 2023 at 13:00 EET.
- The closing date and time for submissions: 20th July 2023 at 13:00 EET.
- Size of annual LNG regasification capacity to be allocated: up to 6 000 000 000 kWh.
- Annual LNG regasification capacity allocation period: 2024 Terminal Gas year (from 1st January 2024 to 31st December 2024).
2023-06-26
Public consultation regarding amendment to the Regulations for use of the LNG terminal
KN, in accordance with the provisions set forth in the Rules on public consultation approved by the National Energy Regulatory Council (resolution No. O3-350, dated 28th of October 2011) is announcing a public consultation on the draft of the amendment of the Regulations for the Use of Liquefied Natural Gas Terminal (hereinafter - the Draft Regulations).
Changes made in the Draft Regulations:
At the end of the period of public consultation conducted by the company, the company will evaluate the comments and suggestions received during the consultation and submit the final edition of the Regulations to the National Energy Regulatory Council.
The Draft Regulations with highlighted corrections:
If you have any questions regarding the public consultation or the amendments provided for in the Draft Regulations, please contact the responsible persons:
Changes made in the Draft Regulations:
- Two long-term capacity allocation procedures will be announced: 1) 9 TWh of LNG regasfication capacity during each Terminal Gas year, divided into 3 capacity packages of 3 TWH each, for the period of 2025 – 2032 (including); 2) 28 TWh of LNG regasfication capacity during each Terminal Gas year, divided into 7 capacity packages of 4 TWH each, for the period of 2033 – 2044 (including).
- The maximum limit of LNG regasification capacity that can be allocated to one Applicant is increased (up to 2/3 of the Nominal capacity of LNG Terminal, i.e. about 22 TWh during each Terminal Gas Year);
- Technical changes are being made in several clauses related to the activities of Designated Supplier, anticipating expiration of these provisions in December 31st, 2024.
- In process of LNG congestion management, corrections are made by refusing the 5% of allowed deviation assessment, if the provided capacity is refused by the user‘s initiative and the LNG cargo is not delivered, i.e. take-or-pay principle would apply to the full scope of the capacity provided;
- Technological condition of the LNG Terminal when necessary must be ensured not only by the Designated Supplier, but also by other clients who are using the Terminal.
- In Annex No. 1 Inter Use Terminal contract, as fas as LNG regasification capacities are concerned, which are expected to be provided from the beginning of 2033;
- In Annex No. 6 contract for use of LNG Terminal: technical corrections in order to respond to changes made in the Regulations, and a new basis for terminating the contract which allows the right to the Operator to unilaterally terminate the contract with the clients after notifying the clients at least 2 calendar years in advance. This basis for terminating the contract is associated with long period of capacity allocation (until 2044).
- And other;
At the end of the period of public consultation conducted by the company, the company will evaluate the comments and suggestions received during the consultation and submit the final edition of the Regulations to the National Energy Regulatory Council.
The Draft Regulations with highlighted corrections:
- Regulations for use of the LNG terminal
- Annex No 1 - Inter-Use Terminal Contract
- Annex No. 4 - Long-term Terminal Capacity Allocation Request
- Annex No. 6 - Contract for Use of LNG Terminal
- Annex No. 7 - List of formulas for calculation of Terminal service prices
- Annex No. 18 - Long-term capacity allocation procedure 2025-2032
- Annex No. 19 - Long-term capacity allocation procedure 2033-2044
If you have any questions regarding the public consultation or the amendments provided for in the Draft Regulations, please contact the responsible persons:
- Logistics Manager Nerijus Strazdauskas, e-mail [email protected], tel. +370 630 04305;
- Head of Regulated Activities Vaidotas Bručkus, [email protected], tel. +370 695 48897.
2023-06-21
A dry dock inspection of the FSRU “Independence” is planned next year
In 2024, before KN (AB “Klaipėdos nafta”) takes over the ownership of the floating storage regasification unit (FSRU) “Independence”, an inspection and repair of the vessel in the dry dock is planned. 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.
In order to ensure that facilities or engineering infrastructure operate efficiently, safely and in compliance with the requirements, it is necessary to regularly maintain, inspect and, if necessary, repair it. The same principles are applied in the maritime sector in the operation of vessels or other water vehicles, periodically ensuring a comprehensive inspection in the dry dock.
During the inspection of “Independence” in the dry dock, it is primarily planned to renew the anti-corrosion coating of the “Independence” hull, to perform other periodic maintenance works.
“We estimate that since the beginning of LNG terminal operations, the terminal has regasified and supplied approximately 12 billion cubic meters of natural gas to the market, supplying natural gas to consumers in Lithuania and the region. In the last year alone, the LNG terminal has been operating at almost maximum regasification capacity. Therefore, the reliable operation of such a strategic infrastructure and, accordingly, the highest level of maintenance is our priority. A thorough inspection of the FSRU before the ownership is taken by KN, will contribute to smooth natural gas supply to customers in Lithuania and neighbouring countries in the future as well,” says Mindaugas Navikas, KN’s Chief Commercial Officer.
Drydocking for vessels with regasification equipment (FSRU) in Europe is usually carried out at shipyards in French, Spanish or Portuguese ports. The exact destination of the “Independence” dry dock will be revealed in the autumn after the joint decision of the current owner of the storage vessel “Hoegh LNG” and KN.
It is estimated that the duration of voyage of “Independence” to and from the dock may last about 12 days, 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 considered that FSRU “Independence” will not perform regasification from 1 May to 13 June 2024. Together with the Baltic-Finnish TSOs, this period of terminal unavailability has been evaluated in the preparation of a joint consolidated maintenance plan for the Baltic-Finnish region for the period from October 2023 to December 2024. During the mentioned period, Lithuania will be supplied with natural gas through the GIPL gas interconnection between Lithuania and Poland and from the Inčukalnis natural gas storage in Latvia. Market participants and clients of the LNG terminal are informed about the scheduled timeline.
In 2012 when Lithuania decided in favour of the floating storage regasification unit (FSRU) solution, the Independence was only the fifth such facility under construction in the world. FSRU “Independence” was built at the South Korean shipyard “Hyundai Heavy Industries Co Ltd”. On the morning of 27 October 2014, the LNG ship docked in the port of Klaipėda at the quays nearby Kiaulės Nugara island. Planned maintenance and repair works of the storage vessel are carried out every year in spring and autumn, but the dry dock inspection has not been done so far.
In order to ensure that facilities or engineering infrastructure operate efficiently, safely and in compliance with the requirements, it is necessary to regularly maintain, inspect and, if necessary, repair it. The same principles are applied in the maritime sector in the operation of vessels or other water vehicles, periodically ensuring a comprehensive inspection in the dry dock.
During the inspection of “Independence” in the dry dock, it is primarily planned to renew the anti-corrosion coating of the “Independence” hull, to perform other periodic maintenance works.
“We estimate that since the beginning of LNG terminal operations, the terminal has regasified and supplied approximately 12 billion cubic meters of natural gas to the market, supplying natural gas to consumers in Lithuania and the region. In the last year alone, the LNG terminal has been operating at almost maximum regasification capacity. Therefore, the reliable operation of such a strategic infrastructure and, accordingly, the highest level of maintenance is our priority. A thorough inspection of the FSRU before the ownership is taken by KN, will contribute to smooth natural gas supply to customers in Lithuania and neighbouring countries in the future as well,” says Mindaugas Navikas, KN’s Chief Commercial Officer.
Drydocking for vessels with regasification equipment (FSRU) in Europe is usually carried out at shipyards in French, Spanish or Portuguese ports. The exact destination of the “Independence” dry dock will be revealed in the autumn after the joint decision of the current owner of the storage vessel “Hoegh LNG” and KN.
It is estimated that the duration of voyage of “Independence” to and from the dock may last about 12 days, 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 considered that FSRU “Independence” will not perform regasification from 1 May to 13 June 2024. Together with the Baltic-Finnish TSOs, this period of terminal unavailability has been evaluated in the preparation of a joint consolidated maintenance plan for the Baltic-Finnish region for the period from October 2023 to December 2024. During the mentioned period, Lithuania will be supplied with natural gas through the GIPL gas interconnection between Lithuania and Poland and from the Inčukalnis natural gas storage in Latvia. Market participants and clients of the LNG terminal are informed about the scheduled timeline.
In 2012 when Lithuania decided in favour of the floating storage regasification unit (FSRU) solution, the Independence was only the fifth such facility under construction in the world. FSRU “Independence” was built at the South Korean shipyard “Hyundai Heavy Industries Co Ltd”. On the morning of 27 October 2014, the LNG ship docked in the port of Klaipėda at the quays nearby Kiaulės Nugara island. Planned maintenance and repair works of the storage vessel are carried out every year in spring and autumn, but the dry dock inspection has not been done so far.
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