2019 November 20 11:23

Tariffs for LNG services provided by KN approved for 2020

The National Energy Regulatory Council (NERC) has approved new tariffs for LNG services provided by KN for 2020, which allow to reduce the security component for consumers, KN says in a press release. Based on the new re-gasification price of 0.35 €/MWh set for 2020, the company plans to collect more revenue directly from the terminal users. The amount of revenue paid by all terminal users will reduce the security component paid by Lithuanian natural gas consumers.
16 TWh of gas have been re-gasified through Klaipėda LNG terminal from the start of 2019 till now. According to KN calculations, if in 2020 Lithuanian and regional consumers would be supplied with the similar amount of gas re-gasified at LNG terminal, it would reduce the security component paid by all natural gas users by approximately 5.6 million euros (calculations based on the newly set tariff).
“The competitiveness of LNG in the Baltic gas market promotes regional utilisation of the LNG terminal, and increasing cross-border gas flows significantly contribute to the lowering of the terminal costs for gas consumers in Lithuania. In October alone, we re-gasified a record 2.7 TWh of gas, which is the absolute highest amount re-gasified per month in the terminal's history. Each terminal user who utilises the services of the terminal pays for the re-gasification services, so high re-gasification volumes are anticipated and will contribute to the lower security component paid by Lithuanian gas consumers next year”, says Arūnas Molis, the Director of KN Klaipėda LNG office.
In the light of the decisions passed by the Board of KN to secure long-term LNG import, KN has proposed to the NERC to significantly reduce the security component related to infrastructure costs, subject to the conclusion of a loan agreement with NIB and if a State guarantee would be granted for this loan. The implementation of this proposal would allow to reduce the costs of LNG terminal infrastructure by 27 million euros per year since 2020.