Lithuania takes ownership of FSRU Independence

The vessel, which arrived in Klaipeda exactly 10 years ago, ensures the country's and the region's energy independence.

For years, the Klaipeda LNG terminal has been a symbol of Lithuania’s success in achieving energy security, playing a pivotal role twice. First, it enabled Lithuania to break free from the Gazprom monopoly, which forced a choice between independence and low energy prices. Second, during Russia's invasion of Ukraine, Lithuania became one of the first EU countries to reject Russian gas supplies, while also helping its neighbours prevent potential supply disruptions.

“This project has transformed our energy architecture, turning vulnerability into strength and dependence into self-reliance. Lithuania has gained unique access to international gas markets and secured a competitive and reliable gas supply. For the first time, we were able to independently decide our energy sources and supply routes. This has ended decades of Russian monopoly and political sabotage,” said the President of the Republic of Lithuania, Gitanas Nauseda.

Nauseda attended the FSRU Independence transfer of ownership ceremony along with the Presidents of Poland, Estonia, and Latvia. The guests were also greeted by the Acting Prime Minister of Lithuania, Ingrida Šimonyte, and former President of Lithuania, Dalia Grybauskaite.

Until recently, the LNG terminal FSRU Independence was leased from the Norwegian company, Höegh Evi. The Law on Liquefied Natural Gas Terminal of the Republic of Lithuania provides for the obligation to acquire and own the LNG FSRU by the end of 2024 and to ensure her operation until 31 December 2044. The final decision to acquire the FSRU Independence was made in 2022.

“The flag on the Independence, a vessel ensuring energy security for the entire region, was by no means a given. Therefore, I am pleased that, following the decision to take ownership, the Lithuanian flag will be raised on the ship. Due to its strategic importance in supplying gas to consumers in the region, the Independence has become one of the symbols of Lithuania’s energy independence and a guarantor of energy security in the region, with the national flag being an inseparable part of this symbol,” commented Inga Žiliene, Acting Vice – Minister of Energy of the Republic of Lithuania.

Darius Šilenskis, CEO of the FSRU’s new owner, KN Energies, states that the timely decision to operate the terminal has already proven beneficial for Lithuania, not only in terms of energy security but also financially.

“Since the LNG terminal began operations, Lithuanian gas consumers have saved an average of €160 million annually due to cheaper gas.

“The successful implementation of the LNG terminal project in Lithuania has allowed our company to establish an international reputation and solidify KN's position as a professional and reliable LNG terminal operator and project developer on the world map.

“When other European countries, which were still dependent on Russia, began searching for solutions, usually requiring significant time resources to achieve changes in the energy market, Lithuania remained stable, as it started its energy independence journey already in 2014 with the commissioning of the LNG terminal in Klaipeda,” noted Šilenskis.

In total, the LNG terminal is used by gas supply companies from five countries: Lithuania, Poland, Latvia, Norway, and Estonia. The FSRU Independence is engineered to fully meet Lithuania's gas needs. It has a nominal capacity of 33 TWh/y, while Lithuania’s natural gas consumption was 14.9 TWh in 2023.”

The terminal is highly reliable, with nearly 500 ship-to-ship operations over the past decade and no safety incidents. This is a significant achievement for the KN Energies team and its partner, Hoegh LNG Klaipeda.

Hoegh LNG Klaipeda, a Norwegian-owned company, is part of the Höegh Evi Group, which has been operating and maintaining the FSRU since 2014. Hoegh LNG Klaipeda will continue as the technical operator of the FSRU Independence after it becomes a Lithuanian property.

“Höegh Evi was honoured to be chosen to build and deliver Independence in 2011, which over the past 10 years has received, regasified and delivered more than 400 cargoes of LNG and performed close to a hundred ship-to-ship operations for Lithuania and the wider Baltic region.

“Höegh Evi is proud to have been selected to build and deliver the Independence in 2011, which has received, discharged and delivered more than 400 LNG cargoes and performed close to 100 ship-to-ship operations for Lithuania and the Baltic region over the last 10 years.

“We are proud to now enter a new phase of partnership with KN Energiés and continue this important work. Höegh Evi’s dedicated seafarers serving onboard Independence will continue to provide Lithuania and its neighbours with reliable access to global energy markets for many years to come,” concluded Morten W. Høegh, Chairman of Höegh Evi.

More than half of the LNG terminal's income comes from foreign customers - each company that uses the terminal pays a regasification service fee. This includes not only Lithuanian companies, but also companies from neighbouring countries. This allows the terminal's operating costs to be eliminated from the security component paid by Lithuanian customers.

Since 1 January 2015, the terminal has regasified close to 16 billion m³ of natural gas, delivered to Lithuania by 79 different LNG carriers. Most of the gas has come from the US and Norway. There were also shipments from Trinidad and Tobago, Nigeria, Egypt, Equatorial Guinea, and Algeria.

Read the article online at: https://www.lngindustry.com/floating-lng/09122024/lithuania-takes-ownership-of-fsru-independence/