• 2020 November 25 11:55

    EC approves state aid measures to secure long-term operation of Klaipėda LNG terminal

    The European Commission (EC) has positively evaluated Lithuania’s goals to secure long-term competitive supply of liquefied natural gas (LNG) by purchasing and operating the LNG floating storage and regasification unit (FSRU) by the right of ownership after 2024 and has approved of granting state aid, KN says referring to the Ministry of Energy of Lithuania. According to this model, the state issues a guarantee that will serve to finance the purchase of the FSRU.

    “The EU has set a target for every Member State to have at least three alternative sources of natural gas supply in order to guarantee energy security and maximum price competitiveness; therefore the EC approval of Lithuania’s long-term access to LNG is crucial. This stage of state aid coordination accomplishes the securing of funds needed to implement the project. Lithuania has already adopted necessary legislation and finally received the EC approval. Thus, now is the time for KN (AB Klaipėdos nafta) to make expedient decisions in order to choose the most cost-effective LNG supply option, which is inseparable from our green energy agenda, in time, i.e. by the end of 2022,” states Minister of Energy Žygimantas Vaičiūnas.

    In 2018, in order to achieve energy security goals and encourage competition among natural gas suppliers, the Lithuanian Parliament passed a decision to purchase the LNG FSRU by the right of ownership, thus ensuring long-term operation of Klaipėda LNG terminal after the expiry of the current lease agreement between state-controlled KN and Höegh LNG at the end of 2024.

    By making a decision regarding the most cost-effective tender to acquire the LNG FSRU for Lithuania, our state may use the option to buy out the current FSRU “Independence” or purchase any other facility of such a type in the international market. The objective set by the state and envisaged in the Republic of Lithuania Law on Liquefied Natural Gas Terminal is to select the most cost-effective tender and a solution that is technologically the most suitable for Lithuania.

    This is the second and final stage of coordination of state aid with the EC, related to ensuring long-term operation of Klaipėda LNG terminal. During the first stage, the EC approval of restructuring the security component of granting state aid was received last year. This year, the security component has decreased by almost 40 per cent having changed the LNG FSRU maintenance model and having arranged lease costs over a longer period.

    “It opens an opportunity for us to take further actions – to invite international consultants to conduct a market research of the facilities of the same type as “Independence”, develop the LNG FSRU purchase and operation strategy, initiate the process of selecting the facility, and get ready for the operation of the facility. All these stages are necessary to both implement the goal set by the state and KN’s aim to find the most cost-effective option that will allow further operation of available infrastructure, i.e. the LNG terminal berth jetty and a connecting gas pipeline branch, into which we have already invested, and keep on creating value for Lithuania as well as our country’s natural gas consumers,” says Darius Šilenskis, CEO of KN.

    During both stages, state aid has been coordinated in accordance with the amendments to the Law on Liquefied Natural Gas Terminal passed by the Lithuanian Parliament in December 2018, whereby Lithuania will secure long-term LNG supply after 2024 by purchasing the LNG FSRU. In December 2019, the Parliament approved of the issuance of state guarantees to the loan agreements of the Nordic Investment Bank (NIB) and the operator of Klaipėda LNG terminal (KN) regarding the purchase of the LNG FSRU and restructuring of the LNG terminal maintenance costs.

    A state guarantee constituting 100 per cent of the loan amount will be issued to cover the NIB loan which will be used to acquire the FSRU. Previously, state aid has been granted to cover the loan targeted at reducing the security component of the LNG terminal. Issuance of the state guarantee with regard to these KN’s loans has ensured particularly favourable borrowing terms.

    State aid is support granted by the state from its resources to certain economic entities or for manufacturing of certain goods/provision of certain services, providing an exclusive economic advantage that could not be created under market conditions, and affecting trade among the EU Member States.

    It should be noted that in the period from January to October this year, as much as 68 per cent of the entire volume of natural gas imported to Lithuania has been supplied through the LNG terminal.

    Lithuania has been currently importing natural gas by a pipeline from Russia through Belarus and the LNG terminal in Klaipėda. The third gas import source will be the GIPL gas connection between Lithuania and Poland to be accomplished by the end of 2021.

2021 January 25

13:02 Port of Rotterdam Authority launches smart bollard trial at ECT
12:13 Chinese ports container throughput increases by 1.2% to 264.3 million TEU in 2020
11:38 Calls at ports of Sakhalin, Kurils and Kamchatka in 2020 grew by 4.4%
11:04 Panama Canal signs MoUs with Panama Ports Company and PSA Panama International Terminal to optimize supply routes for COVID-19 vaccine distribution
10:47 MABUX: Bunker market this morning, Jan 25, 2021
10:12 Throughput of Chinese sea and river ports in 2020 climbed by 4.3% YoY
10:10 The LNG-powered CMA CGM JACQUES SAADE makes her first call at Le Havre
09:51 Rosmorport appoints Aleksandr Smirnov as Acting General Director
09:30 Crude oil prices start this week with a decrease
09:16 Baltic Dry Index as of January 22

2021 January 24

16:37 Boluda Towage acquires Dutch Towage & Salvage Company Iskes
15:13 MARAD announces notice of funding opportunity for America's small shipyard grant program
14:39 Greensea receives US NAVY award to advance Standoff Command and Control
14:18 USCG assists 7 people after boat collision near Fort Pierce
13:42 Contract awards within Renewable Energy and Subsea
12:32 RightShip and INTERCARGO announce important new quality standard for dry bulk sector to be governed by new NGO
11:26 V.Group announces new appointment
10:56 Siem Car Carriers' fleet continues to grow with Super-Eco, LNG powered PCTC vessels

2021 January 23

16:31 DNV GL awards AIP to KSOE for wing sail propulsion system
15:23 Boomsma Shipping installs and sails off with two eConowind Flatrack VentiFoils
14:51 HHLA acquires majority share of automation specialist iSAM AG
13:18 MPA announces 30-day suspension for pleasure craft, ADVANT, for large social gathering on board
12:42 Puerto Aguadulce hits 1 million TEU milestone
11:36 Diana Shipping announces time charter contract for M/V Calipso with Viterra
10:53 Bahri Ship Management receives ISO 45001 certification for occupational health and safety

2021 January 22

18:00 Rosmorport's icebreaker Mudyug starts providing icebreaking assistance in the Baltic Sea
17:36 Andrey Lavrishchev appointed as head of Federal Marine and River Transport Agency
17:13 Aleksandr Poshivay appointed as Deputy Minister of Transport of the Russian Federation
16:34 Rosmorport starts providing geodesic and hydrographic services in the water area of Petropavlovsk-Kamchatsky seaport
16:05 APM Terminals Gothenburg offers certified climate impact calculations to customers
15:49 Sredne-Nevsky Shipyard commences outfitting of yet another minesweeper of Project 12700, Pyotr Ilyichov
15:21 Norsepower installs first tiltable Rotor Sails on Sea-Cargo Ro-Ro
14:58 Container terminal in Świnoujście is in line with sustainable development vision
14:32 Cargo turnover of NCSP Group in 11M’2020 totaled 101.4 million tons, down 21.2% YoY
14:07 Petersburg Oil Terminal in 2020 increased shipments of oil products by 16.6%
14:03 Jan De Nul adds two new vessels to its fleet
13:45 DHT Holdings announces acquisition of two VLCCs
13:29 Iridium partner MetOcean Telematics provides SaR buoys to the USCG
12:52 Havyard develops hydrogen zero-emission vessels in new segment
12:11 THE Alliance announces Transatlantic Service Network adjustments for 2021
11:30 Rosmorport successfully completed formation of Ultramar terminal’s water area
11:06 Training ships Nadezhda and Professor Khlyustin welcome first cadets of 2021 season
11:05 Inmarsat passes 10,000-vessel fleet xpress installation milestone as data demand accelerates maritime digitalisation
10:39 Scottish Ports Group welcomes Scottish Goverment's establishment of 'Greenports'
10:21 Throughput of Kaliningrad port in 2020 fell by 6% Y-o-Y
10:02 MABUX: Bunker market this morning, Jan 22, 2021
09:48 Bunker market sees mixed price movements at the Port of Saint-Petersburg, Russia (graph)
09:30 Crude oil prices decrease amid aggravation of the epidemiological situation
09:12 Baltic Dry Index as of January 21

2021 January 21

18:07 Port of Houston awarded new start for Ship Channel
17:50 Throughput of port Vyborg in 2020 fell by 46% Y-o-Y
17:27 Rolls-Royce secures research contract with US Navy to develop innovative debris detection technology
17:03 Galeon Yachts announce new outbourd model
16:42 Throughput of port Vysotsk in 2020 fell by 4% Y-o-Y
16:32 Jan De Nul Group is the first dredging company to carry out 100% sustainable beach replenishments in Belgium
16:23 Yaskawa Environmental Energy develops a permanent magnet propulsion system for superyachts
16:09 MABUX Bunker Weekly Outlook, as of Jan 21, 2021
16:00 Throughput of port Primorsk in 2020 fell by 19% Y-o-Y
15:36 Bunker market see mixed price movements in the Far East ports of Russia (graph)
15:13 Battle stations for boat-handling systems