Allocation of the capacity of Klaipeda LNG terminal begins

KN (AB Klaipėdos nafta), the operator of oil and liquefied natural gas (LNG) terminals, is launching an annual procedure - allocation of LNG terminal capacity for the new gas year, which starts in October 1, 2020.

Allocation of the capacity of Klaipeda LNG terminal begins
Photo: KN

The Company allocates the capacity in accordance with the Regulations for the Use of the Liquefied Natural Gas Terminal agreed, approved and publicly announced 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.

Arūnas Molis, Director of Klaipėda LNG, emphasises:

“For the second year in a row, we have recorded extremely high performance results of the LNG terminal and a growing competition for terminal capacity in Klaipėda. With this in mind, we have slightly updated our capacity allocation principles this year, for example by setting clear monthly capacity allocation priorities. We are making changes in order to ensure that all terminal users receive the greatest possible benefit from our services and as many LNG carriers as possible sail to Klaipėda.”

During the current gas year, 42 LNG carriers were accepted at the LNG terminal, and other 28 LNG carriers are expected by the end of the gas year. During this period, 2 million cubic meters of gas was delivered, 81.28 percent of gas was delivered from Equinor, a gas reliquefaction plant in Norway. As practice shows, LNG terminal users highly value the possibility to order terminal capacity according to needs throughout the year, not only during the annual capacity allocation procedure. For example, 5 TWh of the terminal capacity was booked last year during the annual LNG terminal capacity allocation procedure. However, currently four times more capacity of the LNG terminal in Klaipėda has been booked for the current gas year, that is, as much as 22 TWh.

A. Molis says:

"The demand for LNG terminal services is growing due to the still low LNG prices in the global market, as well as the assessment of companies due to the opportunities opening up with Balticonnector in the region. Taking into account the intensity of the activities of the LNG terminal, we urge customers to book more capacity during the annual procedure, as this will ensure the supply of LNG according to the needs of companies in advance.”