Monday, September 28, 2020
Home Oil & Gas The allocation of LNG terminal capacity begins in Klaipėda

The allocation of LNG terminal capacity begins in Klaipėda

KN, the operator of oil and liquefied natural gas (LNG) terminals in Klaipėda, is launching an annual procedure, the allocation of LNG terminal capacity for the new gas year, which will start in October.

The Company allocates the capacity in accordance with the Regulations for the Use of the Liquefied Natural Gas Terminal agreed, approved and publicly announced by the State Energy Regulatory Council and the Director General of the Company. During the LNG terminal capacity allocation, LNG regasification capacity and LNG reloading capacity will be allocated in advance.

“For the second year in a row, we have recorded extremely high-performance results of the LNG terminal and growing competition for terminal capacity in Klaipėda,” said Arūnas Molis, Director of Klaipėda LNG emphasises. “With this in mind, we have slightly updated our capacity allocation principles this year, for example by setting clear monthly capacity allocation priorities. We are making changes in order to ensure that all terminal users receive the greatest possible benefit from our services and as many LNG carriers as a possible sail to Klaipėda.”

During the current gas year, 42 LNG carriers were accepted at the LNG terminal, and other 28 LNG carriers are expected by the end of the gas year. During this period, two million cubic metres of gas was delivered, 81.28 per cent of gas was delivered from Equinor, a gas reliquefaction plant in Norway. As practice shows, LNG terminal users highly value the possibility to order terminal capacity according to needs throughout the year, not only during the annual capacity allocation procedure. For example, five terawatts per hour (TWh) of the terminal capacity was booked last year during the annual LNG terminal capacity allocation procedure. However, currently, four times more capacity of the LNG terminal in Klaipėda has been booked for the current gas year, that is, as much as 22 TWh.

“The demand for LNG terminal services is growing due to the still low LNG prices in the global market, as well as the assessment of companies due to the opportunities opening up with Balticonnector in the region,” Mr Molis added. “Taking into account the intensity of the activities of the LNG terminal, we urge customers to book more capacity during the annual procedure, as this will ensure the supply of LNG according to the needs of companies in advance.”

The total amount of LNG terminal capacity allocated is 3.75 billion normal cubic metre (nm3), which is 44,437,500 MWh per gas year. 

The Company accepts applications from potential users of the LNG terminal by May 25. Currently, five companies from Lithuania and Estonia use the LNG terminal in Klaipėda.

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