Klaipėdos Nafta (KN), the operator of Lithuania’s oil and liquefied natural gas (LNG) terminals, has completed the annual procedure of allocating LNG terminal capacity for the new gas year.
Customers, including the Norwegian energy company Equinor, will use the pre-ordered 8.9 terawatts-hour (TWh) LNG terminal regasification capacity during the gas year starting on 1 October 2021.
“This year, the activities of Klaipėda LNG terminal will be more intensive than ever – during this capacity allocation procedure, the largest number of capacities in the entire history of the LNG terminal was ordered,” commented Mindaugas Navikas, Chief Sales Officer of KN. “Not only the existing customers but also the Norwegian energy company Equinor, which is planning to support its operations in the Baltic Sea region, have decided in advance to use the services and benefits of the LNG terminal. We’re happy that KN’s goals of increasing the competitiveness of the LNG terminal in the region, strengthening cooperation with existing and potential customers, and offering flexible technological and planning solutions are now bearing fruits and attracting new strategic partners.”
Mr Navikas drew attention to the trend that has continued to be observed for several years now: the LNG terminal has the opportunity to flexibly respond to relevant market changes and adjust reloading and regasification needs accordingly at the terminal and its customers actively make use of these benefits. Due to the constantly changing prices of natural gas in the global and European markets, the terminal’s customers more often choose to purchase LNG cargo from the spot market and order the necessary capacity during the course of the gas year. It is estimated that in the gas year of 2021 alone, the volume of regasification of spot cargoes will be twice as high if compared to the pre-ordered capacities.
Terminal users ordered capacity not only to meet Lithuania’s demand for gas but also to supply it to Latvia, Estonia and Finland. While planning their activities, customers also take into account the additional market potential that will open up in 2022, the GIPL gas pipeline connection between Poland and Lithuania will start operating and Klaipėda LNG terminal users will be able to supply gas to the southern part of the region.