KN (AB Klaipėdos Nafta), an operator of oil and liquefied natural gas (LNG) terminals has completed an international procurement procedure for the supply of liquefied natural gas for commissioning the LNG infrastructure by concluding a contract with the winning tenderer Shell Western LNG B.V. (Shell), a part of a multinational energy and petrochemical group.
Three LNG suppliers took part in the international tendering procedure. Shell to which the contract was awarded will deliver and reload LNG from a small-scale LNG carrier into new tanks. This delivery will begin the commissioning works at the LNG reloading station. It is estimated that the works will be completed in January 2018 when of all the five LNG tanks 1,000 m3 will be put into operation.
Shell will deliver 1,000 m3 of LNG in the period between 15 August and 30 September as required according to the Tender Conditions. For the first time in Lithuania, such LNG shipment will be delivered to Klaipėda seaport in a small-scale LNG carrier. In addition, it will be the first LNG reload operation from the small-scale LNG vessel into a newly constructed onshore reloading station. The exact date of delivery will be agreed later depending on the schedule of the LNG carrier.
’Interest in the Baltic LNG market from one of the global energy market leaders means a new stage in the history of KN. Upon signing the LNG supply contract with Shell, one of the world‘s largest gas trading companies, the LNG shipment will be delivered with a small-scale transportation vessel to Klaipėda seaport for the first time. Both the entry of a new international supplier and the opportunity for gas importers to purchase LNG at competitive prices are important for the developing LNG market in the Baltic States. A wider choice of supply for even a small purchase of LNG means an attractive price’, says Mindaugas Jusius, KN‘s CEO.
‘In the Netherlands, the usage of LNG is encouraged both in industry and in shipping or ground logistics, we see that Lithuania, thanks to the LNG terminal and the LNG reloading station in Klaipėda, is taking significant and rapid steps towards bringing these sectors closer to cleaner fuel use in the Baltic Sea region. Therefore, we are glad that the Dutch company Shell Western LNG B.V. will bring the first cargo for the commissioning of Klaipėda LNG reloading station. This is an important step in expanding the use of clean fuels – the use of LNG in northern Europe’, said Bert van der Lingen, Ambassador of the Kingdom of the Netherlands to Lithuania.
Just as the LNG terminal, the new reloading station will be open for all LNG suppliers and off takers; therefore, starting from this autumn LNG suppliers may reserve reloading capacities in Klaipėda and deliver LNG cargoes to customers in the Baltic Sea region.