KN starts Klaipeda LNG capacity allocation

Lithuanian Klaipeda LNG terminal operator Klaipedos Nafta (KN) has offered the market 9 TWh of the LNG terminal regasification capacities for the period from 2025 to 2032 and from 2033 onwards.

Archive; Courtesy of Ministry of Energy of the Republic of Lithuania

The National Energy Regulatory Council approved the updated allocation model at the end of July, and according to KN, it envisages the possibility of booking 9 TWh of regasification capacity annually from 2025 to 2032 (inclusive). These capacities are intended to be allocated in three lots of 3 TWh each. Higher capacities, up to 28 TWh, are intended to be offered for the period from 2033 to 2044, KN said, adding that they will be divided into seven lots of 4 TWh each. The capacity allocation procedure began on 15 September.

Mindaugas Navikas, CCO of KN, said: “Russian invasion of Ukraine caused an energy crisis, due to which the demand for natural gas increased to unprecedented heights, not only in Lithuania but also in the entire European Union (EU). The changes related to the European Green Deal also increased the demand for LNG in the community.”

“By the way, the operation of additional infrastructure started in Lithuania, helping to meet this need. Last year, the Gas Interconnection Poland-Lithuania (GIPL) was completed, and the capacity of the gas pipeline between Latvia and Lithuania was also significantly increased. Therefore, there are technical possibilities to supply more gas to a larger number of customers from the Klaipeda LNG terminal. As a result, we are recording considerable interest in the capacities of our terminal.”

Navikas noted that by giving the market participants the opportunity to book capacities from 2033 as well, companies planning a long-term perspective will be able to secure stable access to infrastructure, take advantage of long-term contracts to purchase natural gas at more favorable prices and reduce the uncertainty of the operating environment.

“Our goal is to ensure that the LNG terminal operates at full capacity in the long term. The higher the occupancy of the terminal, the lower its maintenance costs, because every company using the terminal pays a fee for the regasification service,” Navikas stated.

The annual allocated capacity of the Klaipeda LNG terminal is 32-34 TWh, of which 24 TWh has already been reserved for the period from 2023 to 2032 (inclusive). KN said that part of the capacity, as before, is left for spot cargoes.

To remind, in July this year, the terminal’s 6 TWh regasification capacity for the 2024 terminal gas year was allocated to four customers from Lithuania and Estonia.