KN selects international experts to advise on acquisition of FSRU

The winners of the international tenders include: Holman Fenwick Willan LLP - HFW (legal experts), Quality Energy Developments Consulting Limited – QED (commercial experts), and DNV GL AS (technical experts).

KN previously announced that for the implementation of an LNG long-term import solution project in Lithuania, the law provides clear time frames and the company must select and operate the FSRU by the end of 2024. Therefore, external competencies have been used to ensure that the project will be implemented in a timely manner and at the lowest possible cost, in accordance with the principles of transparency, equality, and the promotion of competition.

“In commemorating the sixth anniversary of the LNG terminal, we are taking another step in the implementation of the LNG terminal business continuity – we are using external competencies to ensure the long-term supply of LNG. The LNG terminal has become a strong natural gas connection in the Baltic region and a bridge enabling access to the global LNG market. During January - October of this year, as much as 68% of the natural gas was delivered from the LNG terminal to the national gas grid. The LNG terminal, the natural gas transmission system, the Balticconector connection and in the future – GIPL – all together strengthen the energy resilience of the region to natural gas supply disruptions and ensure the competitiveness of gas prices used in the region. Therefore, long-term operation of the LNG terminal until 2044 must be implemented effectively, which we hope with the help of experienced experts,” comments Darius Šilenskis, General Director of KN.

External experts will consult KN according to the hourly rate stipulated in the contracts, i.e. KN will use the services only when necessary. The assistance of legal and commercial experts is expected to be available by 2024 and technical until 2025, as their external competencies may be required depending on the chosen FSRU operating model. The value of the legal services contract is up to €1.045 million, the commercial services contract is up to €120 000 and the value of the technical services contract – up to €230 000. The planned services of advisory experts will amount to less than 1% of the purchase price of the FSRU.

In order to maximise the transparency and clarity of the public procurement process for the market participants, KN has released the public market consultations for June this year. Prior market consultations are particularly important for complex procurements that require a high degree of preparation.

Read the article online at: https://www.lngindustry.com/floating-lng/13112020/kn-selects-international-experts-to-advise-on-acquisition-of-fsru/