Additional LNG terminal capacities booked for the cargo from USA

12 July 2017

KN (AB Klaipedos nafta), the operator of oil and liquefied natural gas (LNG) terminals, allocated additional LNG terminal capacities to its current client UAB Lietuvos duju tiekimas, which is planning to deliver the second LNG cargo from a US supplier.

Before the end of the gas year, UAB Lietuvos duju tiekimas (LDT) has booked additional LNG terminal regasification capacities planned to be used by this client from 1 August until 31 October this year.

In June, LDT booked LNG terminal capacities for the forthcoming gas year in accordance with the advanced annual procedure of terminal capacity allocation, and now the company has booked capacities for an additional spot cargo.

“Lithuanian gas supply companies have an opportunity to choose from whom and under what conditions to acquire natural gas in the open market in order to supply it to Lithuanian consumers. This opportunity has emerged only after the LNG terminal in Klaipeda was opened and the gas supply monopoly was abolished. We hope that the use of regional infrastructure – Klaipeda LNG terminal and Incukalns underground storage facility – will significantly increase in the coming year. The opening of the Latvian market in April and facilitated usage of the transmission system are bearing fruit,” commented KN CEO Mindaugas Jusius.

According to Mr. Jusius, the principle of operation of the LNG terminal is such that terminal users book the capacities during the annual procedure of terminal capacity allocation or may at any time apply for the allocation of additional capacities when the situation in the LNG market is more favourable. Such terminal flexibility and expedient response to the clients’ needs is an important aspect, particularly when the LNG market is favourable to customers, like it currently is.

“KN has a clear goal to ensure efficient operation of the LNG terminal and seek to cut infrastructure costs for gas consumers. The second quarter of this year as much as 70 per cent of all gas used in the country has been supplied through Klaipeda LNG terminal. Thanks to a strong, professional and motivated team it is possible to reach a sustainable result and create a higher added value to our terminal users and partners even with a very tight terminal usage schedule,” the Head of KN summed up.

The gas year is calculated from 1 October of the current year until 30 September of the following year.

KN, press release