Sunday, July 14, 2024
HomeLNGKN begins allocation of Klaipėda LNG terminal capacities

KN begins allocation of Klaipėda LNG terminal capacities

Klaipėdos Nafta (KN), Klaipėda LNG Terminal Operator, will offer the market 9 terawatt-hours (TWh) of the LNG terminal regasification capacities for the period from 2025 to 2032 (inclusive) and from 2033 onwards. Booking long-term regasification capacities ensures long-term occupancy of the LNG terminal and reduces its maintenance costs. The capacity allocation procedure begins on 15 September.

“Russian invasion of Ukraine caused an energy crisis, due to which the demand for natural gas increased to unprecedented heights not only in Lithuania but also in the entire European Union (EU). The changes related to the European Green Deal also increased the demand for LNG in the Community,” commented Mindaugas Navikas, Chief Commercial Officer of KN. “By the way, the operation of additional infrastructure started in Lithuania, helping to meet this need: last year, the Gas Interconnection Poland-Lithuania (GIPL) was completed and the capacity of the gas pipeline between Latvia and Lithuania was also significantly increased. Therefore, there are technical possibilities to supply more gas to a larger number of customers from the Klaipėda LNG terminal. As a result, we are recording considerable interest in the capacities of our terminal.”

The National Energy Regulatory Council approved the updated allocation model at the end of July. It envisages the possibility of booking an additional 9 TWh of regasification capacity annually from 2025 to 2032 (inclusive). These capacities will be allocated in 3 lots of 3 TWh each. Higher capacities – up to 28 TWh – are intended to be offered for the period from 2033 to 2044. They will be divided into 7 lots of 4 TWh each.

According to Mr Navikas, the energy transformation currently taking place in the EU encourages more and more companies to look for stable and long-term natural gas supply solutions.

“Considering the changes, we will give the market participants the opportunity to book capacities from 2033 as well. In this way, companies planning a long-term perspective will be able to secure stable access to infrastructure, take advantage of long-term contracts to purchase natural gas at more favourable prices, and reduce the uncertainty of the operating environment,” said KN’s Chief Commercial Officer.

KN received inquiries both from market participants located in the region (Latvia, Estonia, Finland, Poland) and from market participants located further away (the Czech Republic, Ukraine, Norway), or from world-class natural gas trading companies. Therefore, there is no doubt that the capacity allocation procedure, especially for capacity allocation until 2032, will be competitive, reported the company.

“Our goal is to ensure that the LNG terminal operates at full capacity in the long term,” concluded Mr Navikas. “The higher is the occupancy of the terminal, the lower are its maintenance costs, because every company using the terminal pays a fee for the regasification service.”

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