KN engaged in negotiations regarding operation of LNG terminal in Brazil

KN (AB “Klaipėdos Nafta”) says it is negotiating with UTE GNA I Geração de Energia S.A. (GNA) for the provision of operations and maintenance services in connection with GNA’S LNG Terminal, located in Porto do Açu (state of Rio de Janeiro), one of the main port complexes in Brazil, which offers a series of logistical solutions for the Brazilian oil and gas market.

KN would be participating in the project as the provider of LNG terminal services, which, in case of successful agreement, would involve its knowledge and competence to ensure flawless operations of the LNG terminal in Porto do Acu.

The project, developed by GNA, encompasses the implementation of two natural gas-fired combined-cycle thermoelectric plants with the combined capacity of around 3,000 MW and an FSRU-based LNG regasification terminal with a capacity of 21 million m3/day. More detailed information about the project is provided at www.gna.com.br

“We maintain our strategic direction and remain interested in the opportunities allowing to engage in perspective international LNG projects. It is a great acknowledgment of our competence and operational excellence, when they grant us invitations to participate in the international tenders. We hope that negotiations with GNA will be concluded successfully and our involvement in this project in Brazil will contribute to creating additional value both for our shareholders and clients”, - says Darius Šilenskis, acting CEO of KN.

According to D. Šilenskis, in order to be able to conclude the contract with GNA, certain preparations, connected with corporate governance procedures, on behalf both of KN and GNA will have to be carried out in advance. 

“Currently we are going through a very efficient negotiation process with GNA. Although it is early to predict when the agreement could be finalized, we make our best efforts to assure that all preparation works are carried out in advance, so that we could focus on the provision of the services right away, should the contract be concluded”, - says D. Šilenskis.

As negotiations are still ongoing, further information regarding the contract is considered confidential.
 
KN has already partnered with companies developing LNG projects in Latin America. In 2015 the company was awarded a consultancy tender in the Port of Cartagena, Colombia. KN team provided consultations on the technical conditions of the port and terminal operations, risk and security management, as well as training of key specialists and other assistance in the commissioning of the LNG terminal.