KN - Knowledge driven

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

Full Pöyry Management Consulting analysis of continued Liquefied Natural Gas (LNG) supply into Lithuania after 2024 is published here:
Independent Economic analysis of the long-term LNG import solution to the Republic of Lithuania

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.

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.

To express their willingness to participate in the Terminal capacity allocation applicants shall submit the form of the Terminal capacity allocation request with the documents listed in the request. Applicants, among other things, shall provide technical information of the LNG carriers arriving for LNG reloading as requested in the Request for Preliminary Schedule for Services. When applying for capacities after the annual Terminal capacity allocation procedure has ended, applicants indicate the LNG carrier technical information in the Monthly schedule request .

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
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

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 Formulas for Calculation of Terminal Service Prices, Taxes, Penalties and Values of Obligation Securities. 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: paslaugos@kn.lt. 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 7^th 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.
Detailed contracting information can be found in part 4.5 of the Regulations.

LNG Carrier Approval Procedure

Terminal Regulations

Schedules

Services and Tariffs

Free Capacities at the Terminal

2018.04.25 The annual liquefied natural gas terminal capacities allocation procedure (documents):

Invitation
Regulation annex No. 4
Regulation annex No. 5

Available Terminal Capacities for Gas Years 2018

Regasification capacities and reloading capacities, which which are available with regard to the following conditions:

Arrival periods of LNG Carriers, taking into account the confirmed Joint Annual Schedule of the Terminal (except for the cases, when existing Terminal Users agree to change arrival periods).
Terminal technological capacity, taking into account the confirmed Joint Annual Schedule of the Terminal and limitations of natural gas transmission system:
- Maximum possible LNG regasification rate - 10.2 million nm3/day
- LNG reload is allowed only to LNG Carriers with capacity within the limits determined by the Regulations
- Filling level of the LNG tanks.

Available Terminal capacities are provided in accordance with the terms and procedures set forth in the Regulations.
Available capacities implies joint Terminal use, when Terminal users borrow or lend LNG quantities so that several Terminal users can use the Terminal simultaneously. The example of available Terminal capacities provisions.
AB „Klaipedos Nafta“ can offer approx. 2.85 billion nm3 of available Terminal capacities for the period from 1st of October 2017 until 30th of September 2018.

Capacities allocated on the 1st of August, 2014:

Terminal User	Allocated Capacities	Amount of Allocated Capacities	Period
UAB „LITGAS“	Foundation regasification capacities	308 531 524 nm^3*	January 1, 2015 - September 30, 2015

^{*temperature (combustion/measurement) - 25/0 °C, pressure - 1,01325bar.}

Capacities allocated on the 4th-12th of October, 2016:

Allocated Capacities	Amount of Allocated Capacities	Period
Regasification capacities	12,917,490,261 kWh*	October 1, 2015 - October 1, 2016

^{*temperature (combustion/measurement) - 25/0 °C, pressure - 1,01325bar, natural gas upper heating value- 11.90 kWh/nm3, LNG expansion coefficient- 1:578 (m3 LNG/ nm3 natural gas)}

Capacities allocated in June- August, 2016:

Allocated Capacities	Amount of Allocated Capacities	Period
Regasification capacities	5,997,643,705 kWh*	October 1, 2016 - October 1, 2017

^{*temperature (combustion/measurement) - 25/0 °C, pressure - 1,01325bar, natural gas upper heating value- 11.90 kWh/nm3, LNG expansion coefficient- 1:578 (m3 LNG/ nm3 natural gas)}

Capacities allocated in a Gas Year 2018:

Terminal User	Allocated Capacities	Amount of Allocated Capacities, kWh*	Period
UAB „LITGAS“	Regasification capacities	3,529,728,894	October 1, 2017 - August 31, 2018
UAB „Lietuvos dujų tiekimas“	Regasification capacities	1,531,000,000	October 1, 2017 - August 31, 2018
AB „Achema“	Regasification capacities	5,611,730,000	April 1, 2018 - September 30, 2018

Terminal User	Allocated Capacities	Amount of Allocated Capacities, kWh*	Period
UAB „LITGAS“	Regasification capacities	3.401.105.521	October 1, 2018 - September 30, 2019
UAB „Lietuvos dujų tiekimas“	Regasification capacities	917.000.000	October 1, 2018 - September 30, 2019
AB „Achema“	Regasification capacities	1.000.000.000	October 18, 2018 - November 30, 2018
AB „Achema“	Regasification capacities	1.871.000.000	April 1, 2019 - May 31, 2019

^{*natural gas upper heating value 11.90 kWh/nm3, expansion coefficient – 1:578 (m3 LNG/ nm3 natural gas), combustion/measurement temperature – 25/0 °C, pressure – 1,01325 bar}

Secondary Market

Terminal Users have the right to transfer Unused Capacities on the Secondary Market to other Terminal Users or persons meeting the requirements raised towards Terminal Users for a price no higher than the price paid for obtained capacities.
Terminal Users are themselves responsible for transfer of Unused Capacities.
Unused Capacities are transferred upon a decision made by the Terminal Users transferring the capacities with the Operator's consent in accordance with the requirements provided in the Regulations.
If a Terminal User cannot itself find an entity willing to obtain Unused Capacities (all or their part) or if the Terminal User wishes for the Operator to organize and carry out the transferring of Unused Capacities, Terminal User informs the Operator accordingly.

Detailed information about capacity allocation in the secondary market can be found in part 5.1 of the Regulations.

Currently no capacity is allocated in the Secondary Market.

Characteristics of the Terminal

Regulated Activity Reports

Terminal service	Price set
LNG regasification service price (approved for year 2019)	0,13 Eur/MWh excl. VAT
LNG reloading service price (approved for year 2015-2019)	1,14 Eur/MWh excl. VAT

Terminal's technological capacity (LNG regasification)	Up to 10,244,300 m³ of natural gas per day
Total capacity of LNG tanks	170,000 m³
Maximal LNG filling level	98% at 70 kPag
Minimal operational LNG heel level	3,500 m³ LNG
Maximal LNG load rate Maximal LNG reloading rate when LNG regasification is performed during LNG reloading Maximal LNG reloading rate when LNG regasification is not performed during LNG reloading	9,000 m³ LNG/ h via all flexible LNG loading hoses 5,000 m³LNG/ h via all flexible LNG unloading hoses 9,000 m³LNG/ h via all flexible LNG unloading hoses
Maximal LNG regasification rate	428,398 m³/ h
Nominal LNG regasification rate	214,199 m³/ h
Minimal LNG regasification rate	57,089 m³/ h
Maximal capacity of an LNG carrier performing LNG load, unless agreed otherwise	160,000 m³
Minimal capacity of an LNG carrier performing LNG load, unless agreed otherwise	65,000 m³
Maximal capacity of an LNG carrier performing LNG reload, unless agreed otherwise	65,000 m³
Minimal capacity of an LNG carrier performing LNG reload, unless agreed otherwise	5,000 m³

Useful information for LNG carriers

Service Tariffs

Main technical characteristics of the Terminal