KN Energies selects contractor for Klaipeda LNG electrification

The contract for the EPC works of the power line connection with the Klaipeda LNG terminal, signed between AB KN Energies and AB Kauno tiltai, is valued at €9.3 million excluding VAT.

For this amount, the contractor is committed to designing and installing the electrical cable necessary for the LNG FSRU Independence. The cable will run through the territory of Klaipeda city and beneath the Curonian Lagoon. In addition, the required infrastructure will be designed and built at the LNG terminal jetty and on the FSRU itself to enable shore connection. This is a technological solution where a ship moored at the jetty is supplied with electricity from the onshore grid, allowing auxiliary internal combustion engines to be shut down.

According to KN Energies, the FSRU Independence is one of the first LNG terminals in Europe where above-mentioned technology will be applied in its operations.

“We will strive to complete the assigned tasks on time and with high quality, fully meeting and exceeding the client’s expectations. We are aware that challenges lie ahead, related to the unique nature of the project itself, as well as communication with foreign suppliers to ensure the delivery and installation of the necessary equipment within extremely tight deadlines. We have planned and scheduled the use of unique and specific technological solutions. For the energy specialists at Kauno tiltai, projects of such scale and significance are not new. Therefore, we feel responsible, capable, and motivated to contribute with our expertise to this sustainable initiative by KN Energies. It is not only about connecting the vessel directly with the power grid but also about reducing pollutant emissions into the environment and preserving nature,” said Aldas Rusevicius, CEO of Kauno tiltai.

Currently, the FSRU Independence operates fully autonomously, generating all its required electricity with the help of four onboard dual-fuel engines. These engines are powered by gas and diesel. Once the Klaipeda LNG terminal electrification project is completed, FSRU Independence will be supplied with electricity generated from renewable energy sources. Preliminary estimates suggest that this will allow for a reduction of the LNG terminal’s CO2 emissions by approximately one-third.

“At the end of last year, after the company assumed ownership of the LNG FSRU Independence, we became fully responsible for the emissions generated by this infrastructure. The implementation of this project will help to reduce terminal generated CO2 emissions by up to 30% and will contribute to sustainable solutions that mitigate environmental impact in the Klaipeda region. The construction of the power line connection to the LNG terminal is one of the company’s most important strategic sustainability projects leading up to 2030,” noted Darius Šilenskis, CEO of KN Energies. He also adds that this project is included in the National Energy and Climate Action Plan for 2021 – 2030.

At the beginning of April 2025, a subsidy agreement was signed with the Environmental Project Management Agency, under which €6 million in funding from the EU’s Modernisation Fund Program was allocated for the implementation of the project. The remaining amount required for the implementation of the project is planned to be borrowed by the company from commercial banks.

KN Energies has also secured the approval of the National Energy Regulatory Council regarding investment of Klaipeda LNG terminal electrification project inclusion into regulated asset base.

The project is expected to be completed within three years.

Read the article online at: https://www.lngindustry.com/floating-lng/07052025/kn-energies-selects-contractor-for-klaipda-lng-electrification/