• 2018 April 12 16:00

    LNG terminal in Klaipėda efficiently guarantees gas supply competition in the region

    KN says the experts from the international company Pöyry Management Consulting presented a study on securing long-term import of liquefied natural gas (LNG). The study presented on 11 April examines the need for LNG supply after 2024 and presents a cost-benefit analysis of the most economically advantageous alternatives of securing such supply. The study reveals that the LNG terminal will continue to bring economic benefits to Lithuania after 2024.
     
    Independent experts selected through an open tender evaluated whether it is appropriate for Lithuania in terms of economic and supply security to ensure long-term import of liquefied natural gas after 2024, when the lease of FSRU Independence expires.
    Experts carried out the cost-benefit analysis with a view to identifying an economically optimal solution for securing long-term LNG supply. They evaluated three potential alternatives: acquisition of the LNG terminal after 2024; extension of the lease for another 10 years; and extension of the lease for another 20 years.
     
    The study reveals that the LNG terminal will bring economic benefit to Lithuania and the region’s gas consumers after 2024. Being a reliable alternative source of gas, the LNG terminal will guarantee competition in the gas market and contribute to the national energy security.
     
     “The findings of the study confirm that the LNG terminal efficiently guarantees gas supply competition in the region and creates conditions for gas supply to Lithuania’s consumers at the best current global market prices. The gas price corresponding to the EU average has been guaranteed in Lithuania since 2015, which is one of the major achievements in terminal operation. With these insights from the expert analysis we are able to move to another stage aimed at providing shareholders with an economically balanced and responsibly assessed proposal regarding a technical solution that best meets the interests of the country, the shareholders and KN,” says Mindaugas Jusius, CEO of AB Klaipėdos nafta (KN), the operator of oil and liquefied natural gas (LNG) terminals.
     
    “The consultants’ analysis shows that the LNG terminal in Klaipėda will continue to play the role of a tool for the exertion of an efficient pressure on gas prices after 2024, like it does at present. It is equally important that any chosen scenario of long-term LNG supply after 2024 – whether buying or leasing the terminal – would enable reduction of terminal maintenance costs for consumers in the coming years,” says Minister of Energy Žygimantas Vaičiūnas.
     
    As the study states, failure to ensure long-term import of LNG supply poses a risk of failure to ensure adequate competition among suppliers and a competitive pressure on gas prices of the dominant supplier. The LNG terminal reduces the risks of possibilities of Gazprom, a dominant supplier in the region, to abuse the dominant position in the market and unreasonably increase gas import prices for consumers. According to estimates, if there were no LNG terminal in Lithuania, Gazprom could apply an extra mark-up of 11 to 20 per cent on gas sold in the region. According to experts, the most conservative estimates show that benefits created by the LNG terminal to Lithuania solely due to lower gas prices would reach EUR 20–60 million annually after 2024, depending on the regional market model functioning at that time.
     
    The economic benefit of the LNG terminal has been evaluated from the perspective of three markets: the Lithuanian market, the common gas market of three Baltic countries, and the common Baltic-Finnish gas market.
     
    The analysis has assessed both opportunities and risks in all three scenarios of long-term security of LNG supply. According to experts, if Lithuania buys a terminal, it will be able to flexibly react to the unexpected shift in circumstances, for example, changes in natural gas consumption. There would be no such flexibility in the case of lease of the LNG terminal.
     
    The study states that if a Lithuanian-Polish gas pipeline (GIPL) is built, the supply security situation will improve, yet GIPL alone will not be enough to guarantee the competitive level of prices. The analysis shows that supply security and efficient communication among suppliers might be ensured only upon availability of at least two sources alternative to Russian gas: the LNG terminal and GIPL.
     
    The analysis also reveals that if decisions related to long-term security of LNG supply are adopted before 2024, this would create additional economic value and enable reduction of infrastructure maintenance costs for gas consumers.
     
    On Friday, an independent expert analysis will be introduced to the Infrastructure Commission of the Government which will envisage further steps. The Government will pass final decisions regarding long-term security of LNG supply. As provided in the Plan of Implementing Measures of the Government’s Programme, this has to be done by the end of 2018.




2018 July 15

11:24 MAN Energy Solutions ready for SMM 2018
10:43 CMA CGM informs of FAK rates from the Indian Subcontinent to North Europe and the Mediterranean

2018 July 14

12:40 CMA CGM announces GRR for Far East to East Africa trade
11:41 ABP: Container terminal operation expansion to meet growing demand
10:14 Navtek selects Corvus Energy to provide battery for the world's first all-electric tug

2018 July 13

18:50 YILPORT Holding submits offer for Taranto Container Terminal concession
18:12 Metal Shark and ASV Global introduce “Sharktech” Autonomous Vessels
17:48 ABP: £2.7 million lock gate project secures future of Newport docks
17:16 Golar LNG Partners completed acquisition of equity interest in Golar Hilli, owner of FLNG Hilli Episeyo
16:48 Total closes acquisition of Engie’s upstream LNG business and becomes world No2 LNG player
16:36 Norwegian Cruise Line confirms options for two more Leonardo-class cruise ships
16:25 Russian Minister of Natural Resources and Environment Dmitry Kobylkin visited SCF headquarters
15:59 Upgraded vessels of Project 14200 started navigation on passenger routes in Ob-Irtysh basin
15:33 Draft law on closed zones for dry bulk cargo transshipment submitted to State Duma (document)
15:12 Wärtsilä signs a EUR 170 million scrubber deal
14:37 Draft law on development of cruise tourism in Russia’s Arctic and Far East submitted to State Duma
14:24 Weatherdock AG offers fishing sector a solution to support the fight against IUU
13:49 Damen supporting European shipbuilding with NAVAIS coordination
13:11 USCG postpones underwater assessment of WWII tanker Coimbra
12:40 A £2.7 million lock gate project secures future of Newport Docks
12:11 Hapag-Lloyd to apply season surcharge for NEC to WCSA trade
11:49 London will host 9th Maritime Salvage & Casualty Response Conference on 12-13 September 2018
11:27 Hapag-Lloyd's PSS for North Europe - Caribbean, Central America trade
11:03 Throughput of port Kaliningrad in 6M’18 up 9% Y-o-Y to 7.20 million tonnes
10:38 Brent Crude futures price down 0.24% to $74.27, Light Sweet Crude – up 0.07% to $70.38
10:24 Hapag-Lloyd to apply Peak Season Surcharge for North Europe - ECSA trade
10:00 Bunker prices are going down at the Port of Saint-Petersburg, Russia (graph)
09:36 Throughput of port Tallinn (Estonia) up 1.4% to 10.09 million tonnes in HI’18
09:17 Baltic Dry Index up to 1,632 points

2018 July 12

18:21 Port of Los Angeles partners with Port of Antwerp to host simultaneous int'l "Hackathon"
18:09 DP World reiterates Validity of Doraleh Container Terminal Concession and Exclusivity Rights
18:03 High volatility in global bunker market, expert says
17:59 Throughput of port Vyborg in 6M’18 up 28% Y-o-Y to 781,200 tonnes
17:36 Maersk Supply Service completes tow of semi-submersible
17:19 Hapag-Lloyd announces port call change of Mediterranean Canada Service (MCA)
17:10 Throughput of port Primorsk in 6M’18 down 15% Y-o-Y to 26.76 million tonnes
16:45 Zelenodolsk Plant Named After M. Gorky lays down yet another small-size missile ship of Project 21631 for RF Navy
16:23 Chevron Marine Lubricants receives NOLs from MAN for use of ACOM with Taro cylinder lubricants
16:17 Teekay Offshore Partners announces expiration, final results of tender offer for its senior notes due 2019
16:13 Port of Los Angeles signs friendship agreement with three Italian ports
15:50 Throughput of port Vysotsk in 6M’18 declined by 1% Y-o-Y to 9 million tonnes
15:24 Damen begins work on Marine Aggregate Dredger dredging system
15:00 Throughput of port Shanghai (China) down 0.6% to 277.7 million tonnes in HI’18
14:42 GTT secures a tank design order from SHI for a new LNGC
14:21 Throughput of port Ust-Luga in 6M’18 declined by 4% Y-o-Y to 49.10 million tonnes
13:58 Throughput of Big Port St. Petersburg up 14% to 29.73 million tonnes in 6M’18
13:33 Sergey Grechishnikov, Production Director of ZNT Yard will be appointed as Managing Director of the company
13:15 Damen delivers two of four ASD 3212 tugs to Smit Lamnalco
12:52 Krasnoye Sormovo shipyard launches Pola Sofia,third dry cargo carrier of Project RSD59 built for Pola Rise
12:31 BMT secures new CTV order from Njord Offshore
12:10 International organizations focus on protecting fishers’ lives through ratification of IMO’s Cape Town Agreement
11:29 Vigor delivers third Hydrus class 400 passenger ferry to WETA
11:02 Fuel oil prices are flat at the Far East ports of Russia (graph)
10:28 Brent Crude futures price up 1.8% to $78.22, Light Sweet Crude – up 0.68% to $70.86
10:06 BOURBON signs general waiver with lenders
09:50 Bunker sales at the port of Singapore in 5M’18 up 1.6% Y-o-Y to 21.43 million tonnes
09:36 Throughput of port Helsinki (Finland) in 6M'18 up 10.3% Y-o-Y to 7.67 million tonnes (table)
09:18 Baltic Dry Index up to 1,586 points

2018 July 11

18:27 Port of Long Beach receives zero-emissions equipment grant
17:41 Hapag-Lloyd revises Riyadh - Customs Inspection Surcharge