KN to enlist external help to find long-term LNG solution

Lithuanian oil and liquefied natural gas (LNG) terminals operator, is looking to enlist external expert services to implement a long-term LNG supply project.

KN to enlist external help to find long-term LNG solution
Courtesy of KN

In this step, KN continued the implementation of the LNG long-term supply solution and kick-started a public market consultation on the planned procurement of legal expert services.

Under the Lithuanian law on liquefied natural gas, KN is obliged to acquire and operate a floating LNG storage and regasification unit (FSRU) by December 31, 2024, at the latest.

The company must ensure the reliable operation of the LNG terminal by 2044.

In order to achieve these goals, the missing competencies will be used to develop strategies and contracts for the acquisition and management of FSRU maintenance services, the company said in its statement.

Various alternatives will be considered with the help of external experts, including the acquisition of the existing FSRU Independence.

According to Darius Šilenskis, general manager of KN, the law provides for a clear timeframe for the implementation of the LNG long-term solution, and external competencies are used in order to implement the project in a timely manner and at the lowest possible cost.

“The project requires specific competencies, such as ship-brokers, ship classification specialists, as well as lawyers specializing in the LNG ship industry. That is why the aim is to use the services of external experts”, Šilenskis said.

KN also plans to procure the services of other external experts by the end of this year, which will help to prepare the FSRU acquisition process and technical specifications.

Prior to initiating the procurement procedure KN intends to start a public market consultation.

“Market consultation allows contracting authorities, such as KN, to better understand the structure of the market and the possibilities of suppliers”, Šilenskis said.

According to him, when implementing the long-term LNG supply solution and preparing for the acquisition of the FSRU, even more attention will be paid to market analysis during the preparation of the FSRU operation strategy, justifications for registration and flag selection technical specification of the FSRU procurement documents, selection criteria, evaluation of tenders, FSRU purchase-sale agreement and/or operation agreement, in order to prepare a list of storage vessel takeover works and conditions and to participate during the takeover of the storage vessel itself in order to fulfil the envisaged conditions, etc.