LNG Terminal Tariffs Approved for 2021

Source: www.gulfoilandgas.com 11/24/2020, Location: Not categorized

November 23rd Lithuanian National Energy Regulatory Council (NERC) has approved new tariffs for LNG services provided by KN for 2021. Reloading service tariffs are differentiated according to the sizes of LNG carriers and the LNG cargo that is delivered. A new price for regasification has also been set. As tariffs change, it is planned to get more revenue from the services provided by LNG terminal and this should reduce the security supplement included in the price of natural gas paid by all Lithuanian natural gas consumers.

On 12 November 2020 NERC set a price cap of LNG regasification for 2021 of 32.5 million EUR and the price for regasification which will be 0.41 EUR/MWh from 2021 (2020 – 0.35 EUR/MWh). According to KN calculations, the security supplement could decrease by about 7.4 million EUR.

Moreover, NERC provided the option of differentiating tariffs in determination methodology of state-regulated prices in the natural gas sector. KN prepared and provided reloading tariff differentiation methodology of the LNG terminal, so the tariffs for LNG reloading are set accordingly:
For small scale cargoes not exceeding 15.000 m3 SGD – 0.53 EUR/MWh;
For medium scale cargoes from 15.000 to 50.000 m3 SGD – 0.41 EUR/MWh;
For large scale cargoes exceeding 50.000 m3 SGD – 0.30 EUR/MWh.

“The change in methodology responds to the company’s two goals – reduce security supplement and increase the competitiveness of the LNG terminal. The methodology ensures that the price for the LNG reloading service is differentiated by estimating the time costs of the LNG reloading operation of different sizes of cargo and the total price paid for the entire LNG reloading operation at the LNG terminal. Aligning with European terminals, we are seeking to attract new terminal users as well as larger and medium scale cargoes by differentiating tariffs – the larger the cargoes, the smaller service price for LNG terminal reloading,” ,” said Mindaugas Navikas, Chief Sales Officer of KN

66 LNG loading operations were performed this year at the LNG terminal.

New tariffs will take effect from 1 January 2021.

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