KN to accept LNG from USA

Natural gas supply and trading company Lietuvos duju tiekimas, which signed an agreement regarding the supply of LNG with the US company Cheniere Marketing International, buys LNG through the LNG terminal in Klaipeda.

“The agreement with this US company is not accidental: long and patient work on the level of both the Government and Lithuanian companies has brought concrete results. It proves that Lithuania has a possibility to import gas from all over the world and offer a competitive price for it to the entire region. It is also historical that it is the first time when LNG brought through Klaipeda is planned to be stored in Incukalns natural gas storage facility in Latvia, where the gas market was liberalised just a few months ago. Having eliminated dependence on the sole gas supplier, which has led to saving millions while not overpaying for Russian gas, the LNG terminal in Klaipeda continues to prove that it has very good and improving prospects and brings tangible benefit to natural gas consumers in the Baltic states,” says Minister of Energy Žygimantas Vaiciunas.

“The agreement signed with one of the major US gas trading companies is a proof that the Lithuanian LNG terminal has enabled market participants to find the most favourable gas import sources and natural gas may reach our region from all over the world. The LNG import terminal in Lithuania is an open access infrastructure platform that encourages optimal usage of the entire gas infrastructure operated by the Baltic states and creation of an efficient supply chain – this is proved by the intentions to store part of the LNG cargo in Incukalns storage facility,” emphasises KN CEO Mindaugas Jusius.

This year has been exceptional for the Lithuanian LNG terminal. It has started with an important event when LNG was for the first time reloaded from a floating storage terminal in Klaipeda into a small-scale transportation gas carrier and transported into a land-based LNG distribution station in Scandinavia. In 2017, for the first time during almost three years of operation of the LNG terminal, even three terminal users booked terminal capacities during the advanced annual procedure of terminal capacity allocation, thus ensuring the provision of services in the forthcoming gas year.

“This year is very significant for the LNG terminal in Klaipeda in terms of diversification of its operations and gas supply. At the beginning of the year, LNG was reloaded into a small-scale LNG gas carrier for the first time, at present we have the first LNG from the US company, and the LNG distribution station testing and the start of operations is scheduled in autumn. All this creates additional benefits to our consumers, since it does not only increase the LNG terminal competitiveness, but also determines more competitive gas prices for consumers through reduction of LNG supply costs,” states Mr. Vaiciunas.

Read the article online at: https://www.tanksterminals.com/storage-tanks/28062017/kn-to-accept-lng-from-usa/