• 2019 November 7 12:27

    Board of KN adopted principle decisions on securing long-term LNG import

    The Board of KN (AB „Klaipėdos nafta“), the Oil and LNG Terminal Operator, adopted decisions to secure long-term LNG import to Lithuania by acquiring liquefied natural gas (LNG) storage unit “Independence” or another floating liquefied natural gas storage unit (FSRU) by the end of 2024. According to the company’s press release, a decision has also been passed to contact the National Energy Regulatory Council (hereinafter - NERC) immediately to optimize terminal costs thereby reducing the cost of LNG terminal infrastructure for consumers by EUR 27 million per year from 2020.

     “Estimates show that the LNG terminal will provide economic benefits for Lithuania and gas consumers of the region after 2024. As a reliable alternative for gas import, the LNG terminal will ensure competition in the gas market and contribute to the energy security of the state. In turn, this provides Lithuania with opportunities for regional leadership in the energy sector and for KN to further actively develop the cross-border LNG chain of value,” says Arūnas Molis, the director of KN Klaipėda LNG.
     
    Final decisions on the specific choice and conditions of the floating liquefied natural gas storage vessel will be approved by the Board of KN, and this decision is expected to be made by the end of 2022. 
     
    In order to implement the decisions on the reduction of the security component, which could be implemented already from 2020 onwards by reducing the security component by about EUR 27 million, the company plans to borrow up to EUR 135.5 million from the Nordic Investment Bank (hereinafter - the NIB).  This loan would be used to finance the rent payable for the LNG storage unit. The loan repayment would be secured by a state guarantee, which has already been agreed with the European Commission (EC) and will also have to be approved by the Seimas.

    “The decisions passed are extremely important as they provide the basis for the company to initiate specific actions to optimize LNG costs as quickly as possible. Of course, this is only one element in the state’s overall goal to reduce the security component. Smooth cooperation between decision-makers, including the NERC, will be crucial for its quickest possible implementation,” says A. Molis.
     
    A. Molis emphasizes that KN will propose to the NERC to reduce the security component upon the condition that an agreement with the NIB for the necessary loan is finalised and the State guarantee for this loan is activated. In addition, the Company’s management is committed to agree with financial institutions regarding financing for the acquisition of FSRU by the end of April 2020, and to ensure the respective state aid clearance for these loans by the end of May 2021.
     
    “We strive to implement the actions set forth in the Law on LNG as quickly and efficiently as possible. The entire process of achieving the overall goal of securing long-term LNG supply to the country remains extremely complex, so at this point we are keeping all decisions focused within KN and we are focusing on the next, but no less important phase related to the acquisition of the LNG storage unit,” says A. Molis.
     
    The decisions of the Board of KN must be approved by the shareholders of KN at the General Shareholders Meeting.




2020 May 29

10:09 DP World joins with TradeLens to digitize global supply chains
09:53 Bunker prices are stable at the port of Saint-Petersburg, Russia
09:35 Baltic Dry Index on May 28
09:20 Konecranes to deliver third mobile harbor crane to South Australia
09:17 MABUX: Bunker market this morning, May 29
08:46 CMA CGM announces FAK rates from Asia to North Africa, Mediterranean and North Europe

2020 May 28

18:37 CMA CGM ends ESS from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
18:07 PortXchange results in shorter idle times on departure at APM Terminals Rotterdam
17:24 Independent Container Line starts new service from Cork to USA
17:20 Antwerp@C investigates potential for halving CO2 emissions in Port of Antwerp by 2030
16:49 Nevsky Shipyard launches lead ferry of Project PV22, Admiral Gennady Nevelskoy
16:17 Finland's new Water Traffic Act enters into force in June
16:05 Lubrizol joins the Getting to Zero Coalition
15:56 Wärtsilä high-efficiency propulsion solutions selected for special high-speed ferry
15:46 ABP keeps Britain trading in the safest way possible
15:02 Bunker prices show no considerable changes at the Far East ports of Russia (graph)
14:38 Bunkering tanker intended for Baikal lake delivered to the customer
14:00 WinGD wins type approval for biggest and most powerful ever dual-fuel engines
13:00 Gasum partners up with the sustainable transport solution provider company Samskip
12:30 More Konecranes BOXHUNTER RTGs to Vietnam
12:00 Konecranes and Fluidmesh join forces to deliver world-first 100% wireless Automated Rubber Tired Gantry crane system
11:30 EPS and Equinor set sights on a trio of newbuild LPG dual-fuel vessels
11:09 Boskalis awarded two dredging contracts in Finland
10:51 Oil prices continue going down
10:30 DNV GL releases first ever traceability standard for reclaimed plastic
10:09 Port of Stockholm announces arrival of the first container ship at Norvik Port
09:44 CMA CGM announces Overweight Surcharge (OWS) from Asia to North Europe
09:37 Baltic Dry Index on May 27
09:19 Rosmorport released young trout into Ladoga lake
08:54 MABUX: Bunker market this morning, May 28

2020 May 27

18:36 Nexans wins major subsea HVDC cable contract from Greece's Ariadne Interconnection S.P.S.A
18:06 The lock gate of the Pierre Vandammelock at the port of Port of Zeebrugge gets decoupled and transported to the inner harbour for renovation works
17:36 Sales of “Honesty” - device to measure the level of liquid in tanks - exceeds 1,000 units
17:06 ZIM posts Q1 2020 results
16:58 NOVATEK-Murmansk obtains resident status at Advanced Special Economic Zone
16:31 Transport Ministry addressed with proposal to introduce criteria for coal ports to be acknowledged as dedicated ones
16:04 UN agencies call for urgent action on crew changes and keyworker designation for sea and air workers
15:59 Cai Mep International Terminal welcomes maiden call of TP17 service
15:13 Traficom extends validity of certain seafarers’ competency and proficiency certificates
14:37 Krasnoye Sormovo shipyard launches Pola Agata of Project RSD59
14:02 First global standard for ship hull cleaning essential for marine ecosystems
13:44 Experts consider development of autonomous shipping as advantage for seafarers
13:29 Introduction of autonomous cargo carriers en masse expected within five-ten years
13:02 DEME Offshore successfully completes the inter-array cable laying works at the SeaMade offshore wind farm
12:45 Industry experts discussed trial project on unmanned navigation in Russia
12:30 Multipurpose Reloading Complex in Ust-Luga: environmental performance conforms with standards
12:01 Payment term for sea port dues remains 30 days for the time being in the Port of Rotterdam
11:03 Wärtsilä upgrades the SCANTS Simulation Complex to provide advanced training at the United States Coast Guard Academy
10:32 Alexeev’s Hydrofoil Design Bureau launches fifth Valdai 45R hydrofoil for Nizhny Novgorod Region
10:05 Oil prices decrease by 0.17%-0.32%
10:03 HMM Algeciras, the largest container ship worldwide, on its way to Rotterdam
09:44 Baltic Dry Index on May 26
09:18 Bunker prices continue going up at the port of Saint-Petersburg, Russia
09:11 CMA CGM announces Overweight Surcharge (OWS) from Asia to the Mediterranean & Black Sea
09:02 MABUX: Bunker market this morning, May 27
08:19 Diana Shipping announces time charter contract for m/v Crystalia with Glencore

2020 May 26

18:32 Diana Shipping signs a term loan facility with ABN AMRO Bank to refinance two separate existing loans with the bank
18:06 Jotun hull skating solutions tested by Wallenius Wilhelmsen
17:31 Bunker prices are going up at the Far East ports of Russia (graph)
17:05 CMA CGM ends PSS for exports from West Med, North Europe, Scandinavia & Poland, Baltic, Italy Adriatic & Black Sea to Mayotte, Seychelles, Comoros & Madagascar outports