• 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 May 22

18:37 CMA CGM announces GRR from India and Sri Lanka to West Africa
18:07 Great Lakes Dredge & Dock Company adopts ABS Subchapter M regulatory compliance mobile software
17:47 Container throughput of port Hong Kong (China) down 2.8% to 6.49 million TEUs in Jan-Apr’18
17:33 Suez Canal revenues up to 479.3million dollar in April
17:26 Severnaya Verf starts cutting metal for initial section of longline factory vessel (photo)
17:05 Med Marine signs two new design contracts with Robert Allan
16:28 Okskaya Sudoverf launches second shallow-draft barge of Project ROB20, Belmax 2 (photo)
16:05 Bibby Offshore secures multimillion North Sea contract
15:50 RF Ministry of Justice registers order on designation of caution areas in ports of cities hosting World Cup 2018
15:34 New generation of RoRo’s designed by KNUD E. HANSEN for Grimaldi
15:04 Iridium network approved to provide Global Maritime Distress Safety System (GMDSS) services
14:39 North West MP finds out more about how the Port of Barrow is powering the region
14:10 Rosmorport continues providing icebreaker assistance in the Arctic Basin
13:45 Bunker prices are going up at the Far East ports of Russia (graph)
13:21 Van Oord marks 150th anniversary with christening of SRI vessel Bravenes
12:42 IMO approves joint RF/USA proposal on regulation of shipping in the Bering Strait (photo)
12:23 Wärtsilä LNGPac passes 100th order milestone
12:14 Jotun Australia is formally open for Yacht business with complete yacht coating solutions
11:30 ABS Nautical Systems chosen as exclusive mobile compliance solution for Crosby tugs
11:26 Baltic icebreaking season 2017-2018 ends
11:03 Throughput of port Kavkaz in 4M’18 up 51% Y-o-Y to 11.28 million tonnes
10:48 IMO agrees to recognize that the Iridium network meets all the criteria
10:37 Presidents of Iceland and Finland discussed Arctic matters on board IB Urho
10:12 Brent Crude futures price up 0.28% to $79.44, Light Sweet Crude – up 0.32% to $72.58
09:44 Development and financing of strategic transport projects uniting Lithuania and Poland discussed in Vilnius
09:16 Baltic Dry Index down to 1,239 points

2018 May 21

18:31 P&O Cruises marks first construction milestone for newest ship with steel cutting ceremony in Papenburg
18:00 IMO continues roll out of new port emissions training
17:35 Preliminary preparation stage for concession on Northern Latitudinal Railway completed
17:08 Two more vessels added to Offshore Fleet of Azerbaijan Caspian Shipping Company
16:40 Oceanographic research vessel Admiral Vladimirsky arrives at port of Messina (Sicily)
15:59 Federal funding contributes to critical infrastructure projects to support trade through the Port of Vancouver
15:31 Vympel Shipyard launches 75th Mangust patrol boat for Russian FSB Border Service (photo)
15:00 Marine Recruiting Agency starts implementing a package of educational software for UCL Holding companies
14:29 Average wholesale prices for М-100 HFO up to RUB 6,326 in RF spot market
14:03 'Sulphur cap chaos in 2020' warn world’s shipowners - ICS
13:57 BMT supports installation of Kriegers Flak Foundations
13:53 Multipurpose Reloading Complex doubles its investments in development
13:27 Financial report of Azerbaijan Caspian Shipping Company receives positive review
12:58 Tallink wins prestigious tourism award at Asia’s biggest tourism fair ITB China
12:29 IMO supported Regional Workshop for Latin-American countries to implement treaties dealing with liability and compensation
11:56 Vladimir Serebrennikov elected as Director General of Arkhangelsk Sea Commercial Port
11:20 FESCO reduces delivery time from Republic of Korea to Russia from 23 to 15 days
10:31 Water Transport newspaper celebrates its centenary on 31 May 2018 at Boris Yeltsin Presidential Library
10:08 MOL starts selling of new "Viable Organism Analyzer" for ballast water
10:02 Brent Crude futures price up 0.7% to $79.06, Light Sweet Crude – up 0.69% to $71.86
09:38 NOVATEK creates Maritime Arctic Transport Company
09:17 Baltic Dry Index down to 1,273 points

2018 May 20

09:21 Hapag-Lloyd announces FAK rates from North Europe to Caribbean, Central America and South America West Coast
09:19 EU Ambassadors visit Peru’s largest multipurpose terminal
09:16 SEA\LNG bolsters its knowledge base with the addition of MAN Diesel & Turbo
09:13 Finnlines starts new direct service between Helsinki and Aarhus
09:11 Canadian Coast Guard selects ABS for fleetwide contract

2018 May 19

10:56 CMA CGM announces FAK rates from Asia to North Africa
10:01 CMA CGM announces PSS from Nigeria to India and Vietnam
07:50 Port of Kiel welcomes “Saga Sapphire” maiden visit
07:47 The “GRANDE HALIFAX” christened in Halifax

2018 May 18

18:00 Denis Manturov appointed as the Minister of Industry and Trade of the Russian Federation
17:44 Port of Hamburg posts Q1 2018 results
17:39 Yevgeny Ditrikh appointed as the Minister of Transport of the Russian Federation (photo)