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PGNiG starts operations in Lithuania

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LNG Industry,

Polskie Górnictwo Naftowe i Gazownictwo (PGNIG) has officially become the sole user of the small scale LNG reloading station in Klaipeda, Lithuania, which gives the company access to the Baltic Sea markets and allows it to optimise the logistics of LNG supplies to customers in North Eastern Poland.

The beginning of April has seen an agreement between PGNIG S.A. and Klaipedos Nafta (KN) come into force, granting the Polish company the exclusive right to use KN’s LNG reloading station located in the sea port of Klaipeda.

“It is an important step in building PGNiG’s position on foreign markets. I am convinced that PGNiG’s competence in small scale LNG trading and operations will enable it to effectively develop the market for this fuel in Lithuania, Latvia and Estonia. We already supply our LNG to customers in Germany and the Czech Republic,” said Jerzy Kwiecinski, CEO of PGNIG “The launch of operations by PGNiG in Klaipeda required making numerous complex trading and operating arrangements. I would like to thank the management of KN for their full involvement in the process. It is the best guarantee of mutual benefits our companies will obtain thanks to the cooperation we are initiating today,” the CEO added.

KN is, among others, the operator of a floating storage and regasification unit in the port of Klaipeda and the small scale LNG reloading station located at the gateway to the port. In 2019, the Lithuanian company organised a tender for the exclusive use of the station for five years. PGNiG’s bid was considered the best and the companies signed the relevant agreement in November 2019.

“We are positive that cooperation between KN and PGNiG will significantly contribute to strengthening of the regional small scale LNG market. Together with our partners, we will strive to intensify its development, which will provide opportunities for more competitive prices and will enable LNG to be widely used by customers in Baltic States, North-Eastern Poland and Central and Eastern Europe,” emphasizes Darius Šilenskis, KN CEO.

The LNG reloading station in Klaipeda has five tanks with a total capacity of 5000 m3 (2250 t) of liquefied gas. It has two loading stations for LNG trucks and ISO containers, which can be used simultaneously. The wharf of the station makes it possible not only to receive LNG from vessels, but also to load LNG. As a result, the station can be used for bunkering ships powered by LNG engines.

The use of the Klaipeda station not only opens foreign markets to PGNiG, but will also increase the attractiveness of the company’s offering to customers in Poland. The cost of LNG transport is an important component of the fuel’s price. For customers from North Eastern Poland, the possibility of receiving LNG from Lithuania will be a good alternative to supplies from the President Lech Kaczynski Terminal in Swinoujscie and PGNiG’s liquefied gas production plants in Odolanów and Grodzisk Wielkopolski, situated in the Province of Wielkopolska.

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