• 2020 May 22 16:26

    Klaipėda LNG terminal is an established player in the global market

    The second largest LNG cargo this year will be imported from the United States and regasified through the liquefied natural gas (LNG) terminal in Klaipėda. About 155 thousand cubic metres of LNG is delivered by the gas carrier Energy Liberty, which is expected to reach the terminal tonight, from May 22 to 23, KN says in a press release.

    The favorable situation in the international LNG market determined the possibility of purchasing and importing a cargo of this scale from the US Klaipėda for the commercial users of the LNG terminal. Since the beginning of the year, there has been a trend of commercial users of the terminal purchasing natural gas imported to Lithuania for a price that is lower than the weighted average price of all LNG transactions concluded under spot contracts (TTF index, see chart).

    The gas carrier Energy Liberty arrives in Klaipėda from Sabine Pass LNG terminal in Louisiana, USA. This is the third LNG cargo from the US and the fifth cargo in total for this year. Prior to the arrival of this cargo, the LNG imported from the US accounted for 5.47% of the total amount of imported LNG at the Klaipėda LNG terminal, since the start of the terminal's operations. The American LNG was imported to Lithuania for the first time in August 2017,  reaching our market from the Sabine Pass terminal.  Earlier this month, 125,000 cubic meters of LNG arrived in Klaipėda from the US.

    The intensification of LNG imports from the US was determined by the extraordinary situation in the LNG market, when many European gas storage facilities were maximally filled and the cargos of the US producers were available to market participants at attractive prices. The Klaipėda LNG terminal, in turn, provides the terminal users with the opportunity to import LNG from producers in different regions, in response to the changing market situation of spot commodities, thus reducing the cost of energy resources.

    According to Dr Arūnas Molis, director of KN LNG, the regionality of the LNG terminal in Lithuania, the flexibility of gas supply and the transparent pricing have a positive impact on LNG demand in the region by taking advantage of the global LNG market opportunities.

    “In terms of LNG trade, the US has been a balancing source of the world LNG supply, and Europe has been a balancing source of demand for the past few years. New LNG liquefaction plants are being built and put into operation in the US, resulting in more flexible cargos, which are not necessarily contractually linked to the final buyer. Such cargoes have strong market demand. In this context, our LNG terminal is already recognized as an established market player and terminal users can choose their import sources flexibly and based on their current needs. And not only in Lithuania or the Baltic Sea region as before - according to a recent report published by the EC, Klaipėda LNG terminal, particularly after the connection with Poland, is a competitive way to supply LNG to Ukraine, Belarus and other EU Eastern Partnership countries that see the perspectives of LNG use in the sectors of industry, transport and other sectors”, said Dr. Arūnas Molis.

    According to the Director of Klaipėda LNG of KN, considering that during a three-month analysis, the average TTF size was higher than the weighted average price of natural gas imports in Lithuania, it can be assumed that terminal users with long-term contracts purchase LNG cheaper. “LNG terminal users choose this gas import alternative themselves by comparing the costs of the product and the entire logistics chain with the corresponding costs of gas imported through the pipeline. Our calculations show that with this alternative, natural gas users receive greater financial benefits per year than the total annual costs associated with the terminal. This phenomenon is particularly pronounced when there is a surplus of gas on the market and it is very important for suppliers to sell their stocks. In this context, it is natural and understandable that we should establish Lithuanian measures to promote the use of LNG, for example, in the DNA plan of the Lithuanian Government for the Future Economy,” says A. Molis.




2020 June 5

18:21 Mezhregiontruboprovodstroy appointed as sole contractor for construction of Utrenny terminal
18:05 CMA CGM announces FAK rates from Europe to Indian Ocean Islands
17:35 Teesport welcomes largest containership
17:05 EUROGATE Intermodal appoints Christopher Beplat as a new managing director
16:50 Russian Railways: Loading of export cargo bound for domestic ports up 6.4% in May 2020
16:35 DNV GL performs over twenty remote wind turbine inspections globally in times of COVID-19 related-travel restrictions
16:05 Gasum performs first LNG bunkering to Heerema’s Sleipnir
15:28 Acquisition and recapitalisation of Royal IHC finalised
14:18 First of two Austal's 118 metre trimarans for Fred. Olsen completes sea trials in Australia
13:56 Rosmorrechflot announces new competition for construction of Bagayevsky hydrosystem
13:29 Zvezda Shipyard stars cutting steel for yet another Aframax tanker
13:01 Keppel enters into framework deed with Borr Drilling to defer scheduled delivery of rigs
12:01 Port of Rotterdam Authority decides to hold RFT for transport service along Container Exchange Route
11:47 Yevgeny Ditrikh takes helm of STLC Board of Directors
11:04 The second largest container vessels in the world, now has its “Socarrat”
10:41 Oil prices rise within $1
10:28 Marseille Maersk sets up new record for the port of Rotterdam
10:23 Training exercise held with rescuers of RF Navy’s Northern fleet to assist emergency ship in the Arctic
10:00 RF Navy's oceanographic research vessel Admiral Vladimirsky entered the North Sea
09:39 Bunker prices rise at the port of Saint-Petersburg, Russia
09:18 Baltic Dry Index on June 4
08:46 MABUX: Bunker market this morning, June 05

2020 June 4

18:20 Wärtsilä to supply Europe's most modern simulator for inland shipping training
18:02 Dutch innovative app trains 10,000 process industry workers in Singapore during Covid-19 lockdown
17:47 Singapore Maritime and Ports Authority issues guidelines for crew change
17:25 Gasum performs first LNG bunkering to Heerema’s Sleipnir
17:02 China Merchants Group's emergency working group of the prevention and control of COVID-19 holds 20th meeting
16:34 Throughput of port Vysotsk in 5M’2020 fell by 24.2% Y-o-Y
16:02 Diana Shipping announces time charter contract for m/v G. P. Zafirakis with Koch
15:41 NS Power's crew rescues two people in the Andaman Sea
15:23 RS Rules update: hybrid propulsion
15:02 Grimaldi boosts its Italy-Greece connections
14:32 DNV GL and ABB launch new MOU to advance marine digitalization with a remote signing ceremony
14:02 150 trapped eels rescued at the Port of Gothenburg
13:48 Bunker price are stable at the Far East ports of Russia (graph)
13:31 MSC Mediterranean Shipping Company extends the seasonal blanking programme on its Asia–Europe network
13:01 Wärtsilä offers new remote service to overcome Covid-19 travel restrictions
12:31 DEME to build the Scheldt tunnel
12:03 Havyard presents new design concept for zero-emission sightseeing vessels
11:45 Annual throughput of Murmansk Transport Hub to be raised to 100 million tonnes
11:23 Construction of automated gate complex commences at APM Terminals Aarhus
11:10 Port of Zeebrugge joins the International Port Community Systems Association
10:58 Jiangnan Shipyard and Gabadi teams complete construction of the first LNG tank as part of an LNG-fuelled container ship project
10:57 AS Tallink Grupp Statistics for May 2020
10:33 More departures added for Helsinki-Tallinn route vessel Star from 4 June 2020
10:11 Oil prices go down by 1.48%-2.06%
10:00 CMA CGM cancels Low Sulphur Surcharge from July 1st, 2020
09:52 Russia’s leading shipping companies suggest development of ATB services by the USA example
09:40 PIER71 launches Smart Port Challenge 2020 with New Venture Capital Partners for maritime tech start-ups investments
09:36 MABUX: Bunker market this morning, June 04
09:14 Baltic Dry Index on June 3

2020 June 3

18:25 Russia's Main Department of State Expertise approves construction of operational water area under Obskiy LNG project
18:03 Cargotec’s Kalmar and MacGregor to help drive development of connected automated waterborne transport through participation in AEGIS project
17:46 Rosmorport announced tender to reconstruct coastal facilities of Vanino-Kholmsk ferry service
17:24 RF Government approved allocation of RUB 60.5 billion for Russian Railways’ BAM and Transsib projects in 2020
17:02 THE Alliance announces COVID-19 response measures for July, August and September 2020
16:35 Russian Railways CEO says railway link with Murmansk to be restored by June 23
16:11 Transport route to link Quy Nhon Port with Northeast Asia
15:49 Rosatomflot completed escorting Vladimir Voronin gas carrier along the Northern Sea Route
15:33 Fincantieri and ENI extend an agreement in the field of circular economy and decarbonisation