• 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.




2019 March 24

16:29 VARO and GoodFuels extend partnership to scale Bio Fuel Oil availability to deep sea segment in ARA Region
15:13 New Kongsberg Maritime application enables Bureau Veritas to successfully complete the first ‘DP Digital Survey’
14:27 ESVAGT increases presence in dynamic offshore wind market
13:03 Semco secures EPCI contract with Total as part of the Tyra Redevelopment Project
12:01 Safe Scandinavia option restructure and extension

2019 March 23

16:03 NCL announces plans for new staff training facility
15:54 ABP Humber provides land to support KIA expansion
14:22 SeaPlanner to support marine coordination for Taiwan's Formosa I offshore wind farm
13:31 Høglund awarded fuel-gas supply systems contract for six Hurtigruten passenger ships retrofits
12:25 McDermott secures substantial offshore EPCI contract in the Middle East
11:21 MacArtney provide Active Heave Compensated MERMAC winch solution to Alcatel Submarine Networks for planned subsea offshore operations

2019 March 22

18:06 GE and Nedstack enter into a partnership to develop hydrogen fuel cell power systems for cruise vessels
17:57 Fitch affirms Deloports rating at 'BB-' with stable outlook
17:36 Samsung Heavy Industries receives a LNGC order
17:05 Maritime Union of Australia issues notice of legal rolling industrial actions at DP WORLD terminals in Australia
16:44 NATO allied nations from last year’s NATO Summit to attend Unmanned Maritime Systems Technology 2019
16:44 Maersk partners with global companies to trial biofuel
16:22 15th edition of Expomaritt Exposhipping Istanbul to be held 2-5 April 2019
16:05 Dutch Sustainable Growth Coalition partners with Maersk in world's largest maritime biofuel pilot
15:30 Hapag-Lloyd announces 2018 results
14:03 ONE unveils enhanced intra-Asia –East India service network for 2019
13:54 Royal IHC to build second TSHD for National Marine Dredging Company
13:41 IMO expands collaborative efforts to promote maritime security
13:17 REMPEITC-Caribe training workshop funded by IMO held in Guyana
12:55 Workshop promoting good practice in spill preparedness and response held in Côte d'Ivoire
12:30 Bunker prices go up at the port of Saint-Petersburg, Russia (graph)
12:03 18 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on March 21-22
11:42 Gazpromneft – Lubricants starts bunkering with marine oils in Primorsk
11:08 MSC Bellissima, MSC Cruises’ latest newbuild visits Valletta Cruise Port
10:50 Maritime Incubator to be established at the Port of Gdansk
10:49 MABUX: Bunker market this morning, Mar.22
10:29 Baltic Dry Index is down to 695 points
10:08 ZIM net loss up to $119.9 million in 2018
09:51 Brent Crude futures price is down 0.21% to $67.72, Light Sweet Crude – down 0.23% to $59.84
09:23 Manufacturing at the Port of Riga beneficial for both businesses and the Port
09:08 DEME Offshore announces Moray East wind farm Tier One suppliers
08:32 Rhenus establishes its own network in South Africa by acquiring World Net Logistics

2019 March 21

18:05 Dublin Bay Biosphere to host international UNESCO EuroMAB Conference
17:53 Detachment of RF Navy’s Northern Fleet completed transfer through the Suez Canal
17:28 McDermott awarded ethylene contract in Russia
17:05 IMO and Saudi Arabia organize course for members of three key regional maritime security agreements to promote maritime security
16:35 Topaz secures contract extension with BP for 12 vessels in Azerbaijan
16:05 Incat announces construction of a 35m Catamaran Passenger Ferry for Samso Rederi
15:52 Kalmar's Eco Reachstackers and Empty Container Handlers to help Ter Haak Group Amsterdam improve the sustainability of its operations
15:31 Severnaya Verf lays down second processing trawler of Project 170701 for Norebo Holding
15:08 German shipyard Lürssen launches project Fiji yacht named Madsummer
14:39 GoodFuels and REINPLUS FIWADO Bunker fuel first inland vessel on 100% sustainable biofuel
14:13 Incat Crowther 35m ferry for Samso Rederi
13:55 Nuclear-powered container carrier Sevmorput on her first voyage under Arctic LNG 2 project
13:24 Andrei Chibis appointed Acting Governor of Murmansk Region
13:17 Coast Guard continues to break ice on Penobscot River to start on the Kennebec River
12:40 Murmansk Region Governor announces resignation
12:00 Steel cut for first short-sea LNG bunker vessel for Eesti Gaas at Damen Yichang Shipyard, China
11:39 15 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on March 20-21
11:13 Bunker prices go down at the Far East ports of Russia (graph)
10:50 Doha to host Ports & Maritime Evolution, Rail & Logistics Evolution, Road & Logistics Evolution Qatar Assembly & Expo in September’19
10:27 Brent Crude futures price is up 0.16% to $68.61, Light Sweet Crude – up 0.02% to $60.24
10:08 MAN receives an order for two-stroke engines from Eastern Pacific Shipping
10:05 MABUX: Bunker Market this morning March, 21
09:59 2018 revenues of FSUE Rosmorport grew by 7% Y-o-Y to over RUB 26 billion