• 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 September 25

14:11 CMA CGM to review sales policy regarding Low Sulphur IMO 2020 Regulation
13:49 NIBULON successfully completed its passenger transportation season
13:11 North Carolina Ports’ terminals resume full commercial operations following hurricane Florence
12:50 Fuel oil prices are going up in the Far East ports of Russia (graph)
12:31 Havila Kystruten selects Havyard to deliver the ship design and extensive equipment package for four new vessels
12:14 European ports welcome Parliament’s explicit support to remove the tax barriers for shore-side electricity for ships
12:01 Long Beach Commission OKs budget for expanded rail yard
11:43 DHT Holdings announces $50 mln scrubber financing
11:32 Nevsky Shipyard takes part in «Marintec Offshore Russia» exhibition
11:00 GTT receives a new order from Samsung Heavy Industries for the tank design of two new LNG carriers
10:55 NYK announces delivery of new wood-chip carrier for Hokuetsu Corporation
10:24 Baltic Dry Index is up to 1,434 points
10:01 Brent Crude futures price up 0.2% to $80.69, Light Sweet Crude – up 0.12% to $72.17
09:38 Yaroslavsky Shipyard lays down oil recovery vessel of Project Р2114 for Transneft
09:15 Audit summary report to be considered by Sub-Committee on Implementation of IMO Instruments

2018 September 24

18:36 DNV GL unveils the complexity of ocean governance in report for the UN Global Compact
18:03 Klaveness Combination Carriers AS announces completion of USD 45.0 million private placement
17:52 Port of Southampton recognised in top 20 under 40 cruise award
17:36 CMA CGM announces GRR from India West Coast to Mozambique
17:03 Metropolitan Plan for Great Newcastle endorses Port of Newcastle vision
16:50 Ust-Luga Container Terminal handles cargo for Nord Stream 2
16:47 Wightlink names its new flagship
16:45 Bomin exits the bunker markets in Singapore and Antwerp
16:43 Hamburg and St. Petersburg strengthen cooperation at the Port Evening
16:33 DNV GL ends operations in Iran by 4th November
16:19 Vladimir Panchenko dredger built by Shipbuilding - Ship Repair Corporation features local content of 90%
16:03 IMO sadness over Nyerere casualty
15:47 Moby Dik terminal starts handling vessels of Sea Connect line
15:33 Wärtsilä inaugurates upgraded EGC test facilities in Norway
15:20 ESPO wants more ambition on harmonisation of data, while maintaining flexibility in reporting systems
15:03 Vinalines to build 2 terminals at $299 mln in Lach Huyen Port
14:46 Port of Antwerp presents smart port of the future at Supernova
14:33 DFDS Seaways raises capacity on route Zeebrugge - Norway
14:18 Feasibility study of concession of state stevedoring companies «Olvia» and «Kherson» presented for acquaintance to potential investors
14:03 Norway’s largest cruise port of Bergen to build Europe’s largest onshore power supply facility
13:59 Sea Port of Saint-Petersburg named one of the best transport infrastructure facilities
13:34 Average wholesale prices for М-100 HFO up to RUB 21,529 in RF spot market
13:11 Okskaya Sudoverf lays down fourth dry cargo carrier of Project RSD32M
12:45 NOVATEK shipped first LNG cargo to Brazil
12:23 Finalists for the Seatrade Maritime Awards in Dubai announced
12:00 Nor-Shipping 2019 takes place in Oslo and Lillestrøm, Norway, from 04 to 07 June 2019
11:16 Longline factory ship Marlin laid down by Severnaya Verf shipyard to feature 40% of local content
10:54 Damen performs float-out of Australian icebreaker
10:52 NOVATEK increases number of Management Board members
10:28 Smart shipping to be under the spotlight at Seatrade Maritime Middle East
10:05 Baltic Dry Index is up to 1,413 points
09:43 Brent Crude futures price up 1.25% to $79.22, Light Sweet Crude – up 1.2% to $71.63
09:21 Freeport of Riga’s project on construction of Krievu Island Terminal enters its final phase
09:00 Vice Premier Han Zheng inspected COSCO-PSA terminal in Singapore
08:14 International maritime community reaffirms cooperation in the Straits of Malacca and Singapore

2018 September 23

10:47 DEME unveils innovative nodule collector pre-prototype ‘Patania II’
10:33 Global Ship Lease secures additional charter coverage and adds Maersk Line to charterer portfolio
10:30 Hapag-Lloyd announces rates from Latin America to North Europe and South Europe

2018 September 21

18:06 Forth Ports wins prestigious award for community work
17:44 NCSP Group's cargo turnover for January–July 2018 totaled 82,351 thousand tons
17:28 First ISO-container ever loaded with liquefied natural gas at the LNG terminal in Świnoujście
17:06 Gibdock, RSP Systems and New Zealand fisheries choose LR
16:31 Outlook for marine cargo insurance challenging but opportunities remain for underwriters, says IUMI
16:04 Babcock ecoSMRT receives LR acknowledgement for ship application
15:09 Trafigura holds naming ceremony for first of 35 newbuild crude oil and product tankers