KN has completed the annual procedure of allocating LNG terminal capacity for the new gas year
KN (AB Klaipėdos Nafta), the operator of oil and liquefied natural gas (LNG) terminals, says it has completed the annual procedure of allocating LNG terminal capacity for the new gas year. Customers, including the Norwegian energy company Equinor ASA, will use the pre-ordered 8.9 TWh LNG terminal regasification capacity during the gas year starting on October 1, 2021.
Last year, 8.4 TWh was distributed during the annual capacity allocation procedure, and additional 12.3 TWh of natural gas was ordered during gas year.
‘This year, the activities of Klaipėda LNG terminal will be more intensive than ever - during this capacity allocation procedure, the largest number of capacities in the entire history of the LNG terminal was ordered. Not only the existing customers, but also the Norwegian energy company Equinor, which is planning to support its operations in the Baltic Sea region, have decided in advance to use the services and benefits of the LNG terminal. We’re happy that KN’s goals of increasing the competitiveness of the LNG terminal in the region, strengthening cooperation with existing and potential customers, and offering flexible technological and planning solutions are now bearing fruits and attracting new strategic partners’, says Mindaugas Navikas, Chief Sales Officer of KN.
Mindaugas Navikas draws attention to the trend that continues to be observed for several years now - the LNG terminal has the opportunity to flexibly respond to relevant market changes and adjust reloading and regasification needs accordingly at the terminal, and its customers actively make use of these benefits. Due to the constantly changing prices of natural gas in the global and European markets, the terminal’s customers more often choose to purchase LNG cargo from the spot market and order the necessary capacity during the course of the gas year. It is estimated that in the gas year of 2021 alone, the volume of regasification of spot cargoes will be twice as high if compared to the pre-ordered capacities.
Terminal users ordered capacity not only to meet Lithuania’s demand for gas, but also to supply it to Latvia, Estonia and Finland. While planning their activities, customers also take into account the additional market potential that will open up in 2022, the GIPL gas pipeline connection between Poland and Lithuania will start operating and Klaipėda LNG terminal users will be able to supply gas to the southern part of the region.
During the current gas year of 2021 (that lasted from October 1, 2020, to June 1 of this year), 49 LNG carriers have been accepted at the LNG terminal (compared to 50 in the same period of the previous year), and another 11 LNG carriers are expected by the end of the gas year. During this period, 2 million m3 of LNG have been brought to Lithuania, most of which came from the USA.
The company allocates capacity in accordance with the Regulations for the Use of the LNG Terminal agreed, approved and made public by the National Energy Regulatory Council and CEO of the company. During the LNG terminal capacity allocation, LNG regasification capacity and LNG reloading capacity were allocated in advance.
The total amount of LNG terminal capacity to be allocated is 3.75 billion nm3 or 44,625,000 MWh per year, applying a natural gas gross calorific value of 11.90 kWh/nm3.
The gas year of 2022 will begin on October 1, 2021, and last until September 30 of next year.
The company regularly updates its website with information on the available capacity of the LNG terminal, which can also be ordered during the gas year.