KN (AB Klaipedos nafta), the operator of oil and liquefied natural gas (LNG) terminals, is launching an annual procedure –Klaipeda LNG terminal capacity allocation for the new gas year, which starts on October 1st, 2021.
‘This gas year has been intense when it comes to the operation of the LNG terminal. Last year during the capacity allocation procedure the most capacity was booked in the entire history of the LNG terminal. At the end of the gas year a significant amount of additional capacity was booked. This was due to the low LNG prices on the market and LNG buyers in Europe actively took advantage. In the first quarter of 2021 a peak in the Asian spot market was observed, as well as the diversion of some LNG cargoes to exactly that region, though the supply of natural gas through the Klaipeda LNG terminal remains important to its customers. This year may be important for customers, who are planning their activities and willing to reserve LNG terminal capacities also due to the planned completion of the GIPL connection between Lithuania and Poland, which opens up additional market potential in 2022’, notes Mindaugas Navikas, Chief Sales Officer at KN.
During the current 2021 gas year (counting from 1st October 2020 to 30th September 2021), 41 gas carriers were received at the LNG terminal (compared to 42 serviced last year), and another 9 gas carriers are expected to reach Klaipeda by the end of the gas year. During this period, 1.73 million cubic metres of LNG were delivered to Klaipeda, most of which (82%) were delivered from the USA. During the LNG terminal capacity allocation procedure announced in April of 2020, about 8.4 TWh of terminal capacity were booked, and almost 12 TWh were booked during the current gas year, a total of 20.3 TWh (compared to 22 TWh the period before).
‘This year, we set ourselves the task to answer the question what long-term capacity allocation and tariffication mechanism is the most suitable for operations of Klaipeda LNG terminal. For this reason, a study will be carried out by external experts comparing the capacity allocation and pricing mechanisms of LNG terminals operating in Europe. Finding the optimal model suitable for our terminal will undoubtedly change both the principles of capacity allocation and the pricing itself, but no changes are planned for this particular gas year yet’, adds Mindaugas Navikas.
The company allocates the capacity in accordance with the publicly announced Regulations for the Use of the LNG Terminal, which are agreed and approved by the State Energy Regulatory Council and the Director General of the Company. During the LNG terminal capacity allocation, LNG regasification capacity and LNG reloading capacity will be allocated in advance.
The total amount of the allocated LNG terminal capacity is 3.75 billion nm3, which is 44,625,000 MWh per year, applying a natural gas gross calorific value of 11.90 kWh/nm3. The company regularly updates information on its website and publishes newest data on the available capacity of the LNG terminal, which can also be booked during the gas year.
KN accepts applications from potential users of the LNG terminal by May 24, 2021, 4:30 p.m. Lithuanian time.
This year, six companies from Lithuania and Estonia are using the LNG terminal in Klaipeda.