Klaipėdos Nafta signed contracts with three LNG terminal users

KN (AB Klaipėdos Nafta), operator of oil product and liquefied natural gas terminals, says it has signed contracts with three LNG terminal users, who allocated part of the terminal capacity before the start of the new gas year.

The capacity of KN’s Klaipėda LNG terminal, which has ensured the supply of natural gas from 2014, has been pre-booked by UAB LITGAS, UAB Lietuvos dujų tiekimas (Lithuanian gas supply) and AB Achema.

This is the first time in the almost three years of operation of the LNG terminal, where up to 3 terminal users have reserved terminal capacities in advance during the preliminary annual terminal capacity allocation procedure and have thus secured their gas delivery services over the coming gas year.

The companies have reserved the terminal’s capacity, and according to the amounts reserved during the preliminary procedures, they plan to import a total of 11 conventional LNG cargoes.

As in previous years, the company announced the LNG terminal capacity reservation procedure in advance, in order to enable terminal users to conveniently plan LNG ordering and shipping processes. This approach has been applied by KN from the inauguration of the terminal, since the preliminary procedure is convenient not only for users, but also for the company itself, because it allows the work of the terminal to be effectively planned and it ensures the delivery of quality services.

“KN announced its preliminary process in accordance with the annual LNG terminal capacity allocation procedure, since market participants plan part of their take-up of goods in advance, and they order the rest of the LNG terminal capacity during the gas year. The flexibility of the LNG terminal’s service provision on the principle of access to third parties provides opportunities to order additional capacity as the need arises, dictated by the spot market, which our terminal customers have so far used successfully. The fact that three users have reserved terminal capacity at the same time is proof that these services are used by Lithuanian gas consumers. This is a clear factor for all the Baltic Sea region countries and market participants, that the LNG terminal operates in Lithuania, providing not only accessible service provision, and an efficient logistics chain, but also creating the necessary conditions for the importation of natural gas on competitive terms”, comments Mindaugas Jusius, General Manager of AB Klaipėdos nafta.

The preliminary capacity allocation procedure was announced by KN this year on 25 April. The new gas year runs from 1 October 2017 to 30 September 2018.