KN concludes agreement with UAB Elektrėnų energetikos remontas on reconstruction and adaptation of two storage tanks for bitumen loading

KN (AB Klaipėdos Nafta), the operator of oil and liquefied natural gas (LNG) terminals, says it concluded an agreement with UAB Elektrėnų energetikos remontas on the reconstruction and adaptation of two storage tanks for bitumen loading. These tasks are scheduled for completion in the second half of the next year. The agreement is valued at EUR 2.1 million. This is one of several investment projects planned by the company in order to increase the efficiency and flexibility of the oil terminal in Klaipeda by adapting the existing infrastructure to new cargoes.
 
The contractor undertakes to fully prepare the existing two storage tanks of 4200 cubic meters, used for storing fuel oil with water impurities, for loading and storage of bitumen, a new product.  Product unloading pumps will be installed next to the storage tanks, that will pump hot (150-160 degrees Celsius) bitumen from tank trucks into the storage tanks, which will be stored and later exported by tankers.
 
“Implementing our strategic plan and achieving one of the goals – we are launching a project for the adaptation of storage tanks for bitumen loading, so we can enter the markets of new oil products. This is a new product that we plan to start loading next year. This is also tied to our goal for increasing the efficiency of the KN oil terminal. This year, unlike any other, has shown that long-term planning combined with a quick reaction to market changes and timely adaptation is necessary in order to facilitate losses in one product segment by diversifying the portfolio. Due to lower oil prices and margins of oil product refining this year, as their flows through KN terminals decreased, more oil and biofuels were loaded as well as more oil product storage services were provided,” says Mindaugas Navikas, Chief Sales Officer of KN.
 
Bitumen is used in projects such as the production of roofing and road construction. According to the Chief Sales Officer of KN, when planning the bitumen loading, it was decided to adapt the existing storage tanks to the new product rather than expand the existing KN terminal. This will save time and achieve the goal of making optimal use of the existing terminal infrastructure, as the construction of new storage tanks would take longer than the reconstruction of the existing ones. During the last 4 years, KN has invested about EUR 45 million in Klaipeda oil terminal, and last year the company started operating a new storage tank park, the volume of which increased by 120 thousand cubic meters and currently reaches 575,000 cubic meters.
 
“In addition to this investment, we are implementing other investment projects necessary to ensure the competitiveness and flexibility of the infrastructure. Together with Klaipeda State Seaport Authority, we are carrying out the reconstruction of KN berths,” says M. Navikas. “After the reconstruction of the berths, three ships will be able to moor and load at the same time, and we will have the opportunity to receive the largest tankers that can enter the Baltic Sea. KN also continues to focus on the environment and implements the Environmental Action Plan, according to which the KN’s investments in the environment by the end of 2021 will reach EUR 8 million. In 2013-2019 KN has already invested almost EUR 5 million in measures to reduce air pollution.”