Klaipėda LNG terminal
About LNG terminal
The liquefied natural gas (LNG) terminal operates in the southern part of Klaipėda Seaport, in the Curonian Lagoon at the Kiaulės Nugara Island. Co-ordinates of the terminal: 55º39‘50‘‘N; 21º08‘30‘‘E (according to Greenwich). Code of Klaipėda Seaport (UN LOCODE): LTKLJ
Put into operation in December 2014, the LNG terminal is one of most important facilities in Lithuania that ensures the national energy security. It has enabled the formation of a natural gas market in Lithuania and opened opportunities for the country to import natural gas from all over the world. Now customers can receive the gas from various suppliers at market prices.
The LNG terminal consists of a floating storage regasification unit (FSRU) named Independence, a berth and a gas pipeline. The FSRU was built by Hyundai Heavy Industries Co., Ltd., a South Korean shipbuilding company, and is owned by Leigh Höegh LNG (Norway). It is permanently moored to a berth in the Klaipėda Seaport. The LNG terminal is connected to the natural gas transmission system.
Characteristics:
- The first terminal that ensures the energy security of the Baltic Sea Region
- Third-parties have access to the capacities of the terminal
- Attractive regasification tariff rates promote the development of the natural gas market in the country, whereas the LNG handling rates create competitive conditions for small-scale LNG operations
- The Klaipėda Seaport is a non-freezing port, which guarantees smooth navigation and continuous handling all year round
- LNG used for process needs is allocated to terminal uses based on actual consumption;
- Storing the minimum gas quantity on FSRU means that the terminal is always ready for operation
- The infrastructure is suitable for both regasification and LNG transfer
- The terminal enables the reservation of the spare LNG regasification and transfer capacities depending on the demand and technical capacity of the terminal.
Floating Storage and Regasification Unit (FSRU)FSRU Independence is an LNG carrier designed as a FSRU. Moored at a berth in the Klaipėda Seaport, that receives/transfers the LNG from/to the carriers coming to the port. The LNG is regasified in the heat exchangers of the FSRU.
The gas carriers are moored to the right side of the FSRU. The terminal berth is 450 m long and consists of three mooring points, six rope attachment points, servicing and high-pressure platforms, and connecting bridges. Special equipment has been installed on the berth, such as fire safety towers and a fire extinguishing system, maintenance cranes, high-pressure loading arms, quick-detach rope hooks, electric generators etc.
An almost 18 km long pipeline connects the LNG terminal and a natural gas distribution station of Amber Grid AB, Lithuania‘s natural gas system operator. The metering of the LNG regasified at the terminal takes place at the terminal‘s gas metering station.
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How to Become a User
How to Become a User
Available Terminal Capacities are allocated by the Operator every Gas Year. The Operator places the invitation to participate in the annual capacity allocation procedure on its website. Terminal capacities can also be allocated after the annual capacity allocation procedure and during the current Gas Year if there are Free Capacities.
The Operator continuously announces and updates the information about Terminal Capacities on offer on its website.
Main Steps
Capacity allocation after the end of the annual Terminal capacity allocation procedure
Requirements to Terminal Users
Submission of the Terminal Capacity Allocation Requests
Contracting
The Operator continuously announces and updates the information about Terminal Capacities on offer on its website.
Main Steps
Capacity allocation after the end of the annual Terminal capacity allocation procedure
- Capacity is allocated after the annual Terminal capacity allocation procedure or during the gas year provided there is free capacity
- Free capacity is published on www.kn.lt
- Requests should be submitted 60 days before use (unless agreed otherwise)
- Decision on capacity allocation is made no later than 5 days from the request submission
- Capacity use is subject to the annual Schedule approved by the operator
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A detailed scheduling methodology can be found in part 6 of the Terminal Use Regulations.
Requirements to Terminal Users
Applicants seeking to obtain terminal capacities shall meet the following requirements:
- Hold a natural gas supply license if it is mandatory for performing the activity for which respective Terminal capacities are being obtained;
- Have the LNG supply sources, justified by letters of intent, written confirmations of contractors and (or) equivalent evidence of LNG sales to the applicant, the total amount of which is not less than the requested capacity amount;
- Have sufficient financial ability and/or planned funding sources to cover the chain of LNG and/or natural gas supply, including use of the Terminal capacities;
- Meet other Terminal user requirements set under the legal acts, if such are stipulated as well as follow recognized standards of business ethics.
Submission of the Terminal Capacity Allocation Requests
Prior to the submission of the Application, the Applicant must have completed the Operator's Interest Party Due Diligence of interested parties of legal entities and evaluation of transactions of interested parties.
The applicant shall provide the operator with the following documents along with the request:
The applicant shall provide the operator with the following documents along with the request:
- Copies of legal entity's registration certificate and articles of association (or other founding documents);
- Copy of the natural gas supply license if it is mandatory for performance of the activity for which respective Terminal capacities are being obtained;
- Copies of letters of intent certified by applicant, written confirmations of contractors and (or) equivalent evidence of LNG delivery to the Terminal, signed by the applicant and selected LNG sellers;
- Original of the Bank Guarantee to Secure the Validity of the Proposal (Annex No. 8 to the Regulations) and issued for an amount of not less than calculated according to a respective formula on the List of Terminal Service Prices and Formulas. This requirement is not applied to a Designated Supplier in the scope of Terminal Capacities which are assigned for Terminal's obligatory quantity supply in pursuance of statutory duty established by the Law on Liquefied Natural Gas Terminal of the Republic of Lithuania.
- Request for Preliminary Services Schedule (Annex No. 5 to the Regulations) (provided during the annual Terminal Capacity Allocation Procedure) specifying the requested Services provision dates, which later to be clarified in Service Schedules, exact annual and monthly amounts of LNG planned for LNG Regasification and/ or LNG Reload, and planned number of Cargoes or Monthly Schedules (Annex No. 11 to the Regulations) (provided during allocation of Terminal capacities after the annual Terminal Capacities Allocation Procedure) indicating exact amounts of LNG planned for LNG Regasification and/ or LNG Reload during the month;
- A copy of consolidated financial statements of the applicant or its parent company (if any) for the past 3 years or the period since registration of the applicant or its parent company (if the enterprise or its supervising company has been undertaking activities for less than 3 financial years).
Terminal capacity allocation requests together with the aforementioned documents must be submitted to AB “Klaipėdos nafta” in writing, by registered post mail or courier to the following address: Buriu str. 19, P.O. box 81, LT-91003, Klaipeda, Lithuania (by registered mail or courier), by fax No.: +370 46 313142, or by e-mail: [email protected]. In any case applicant must provide the original copy of the Bank Guarantee to Secure the Validity of the Proposal. Requests, which were not received in time or sent to the wrong address, as well as requests not meeting the requirements of the invitation and the Regulations in case of failure to remove inconsistencies (if they can be removed) shall be rejected.
Contracting
- Applicants whose Requests have been fulfilled shall sign a Terminal User's Contract and an Inter-Use Terminal Contract.
- After the annual capacity allocation procedure, contracts have to be signed no later than the 7th of June of each year.
- Contract drafts are provided along with the Operator's decision regarding the Terminal Capacity allocation to Terminal Users.
- The Applicant has the right to refuse to sign the contract only in case he was not allocated all of the Terminal Capacities specified in his Request in accordance with the procedure set forth under the Regulations.
- If a Terminal User who is allocated with Terminal Capacities according to the procedure set forth under the Regulations already holds a valid contract with the Operator, the Operator draws up an additional agreement to the Terminal User's Contract and submits it to the Applicant to be signed no later than 4 calendar days from the decision regarding allocation of such Terminal Capacities to the Terminal User.
- Having signed a contract the Applicant becomes a Terminal User.
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Detailed contracting information can be found in part 4.5 of the Regulations.
LNG Carrier Approval Procedure
LNG Carrier Approval Procedure
The LNG Carrier approval request should be sent to [email protected] with a copy to [email protected]kn.lt
A detailed LNG Carrier approval procedure explanation can be found in part 7.1 of the Regulations and Operator's technical conditions.
List of approved LNG carriers at Klaipėda LNG terminal
List of approved LNG carriers at Klaipėda LNG terminal
Useful information for LNG carriers
The Terminal operator has prepared a Port Information booklet based on Klaipėda Port specificity.
Services and Tariffs
Services and Tariffs
Terminal’s services
Service Tariffs
The following prices are applied for the Terminal’s services:
| Terminal service | Price set for 2021, Eur/MWh without VAT | Price set for 2022, Eur/MWh without VAT |
|---|---|---|
| LNG regasification | 0,41 | 0,41 (until 1 May 2022) 1,19 (from 1 May 2022) |
| LNG reloading: | ||
| Small scale LNG cargo, up to 15.000 m3 | 0,53 | 0,56 |
| Medium scale LNG cargo, from 15.000 m3 to 50.000 m3 inclusive | 0,41 | 0,43 |
| Large scale LNG cargo, from 50.000 m3 | 0,30 | 0,31 |
LNG regasification service price is set by the Operator and approved by the National Energy Regulatory Council (hereinafter, NERC) on a yearly basis and LNG reloading service price is set and approved on a yearly basis as well:
- LNG regasification service price set for 2021 was approved by the NERC’s resolution No. O3E-1207 on 23rd November 2020;
- LNG reloading service price set for 2021 was approved by the NERC’s resolution No. O3E-1206 on 23 November 2020.
- LNG regasification and LNG reloading service prices set for 2022 was approved by the NERC‘s resolution No. O3E-1496 and, respectively No. O3E-1495 on 16 November 2021.
The following prices are applied for the transmission system operator‘s AB Amber Grid services:
| Entry point A | AB Amber Grid applies a transmission fee at the natural gas Entry point A: |
| Domestic Exit point D | According to the above mentioned NERC‘s resolutions, a three-component transmission fee* is applied to the users of the natural gas transmission system for transporting natural gas through the Domestic Exit Point D. Additionally, the natural gas Supply Security Charge also set by the NERC is applied. Starting from 1 January 2022, the Supply Security Charge was set to 252,86 Eur/MWh/day/year (ex. VAT) by the NERC resolution No. O3E-1522 on 19th November 2021 |
* For more information please visit AB "Amber Grid" website.
