The Lithuanian National Commission for Energy Control and Prices (NCECP) approved liquefied natural gas (LNG) terminal rules today. The rules, which are the final step of the LNG terminal business model, set out how the LNG terminal will provide regasification and small scale LNG services.
The rules are in line with the best European practice and based on worldwide terminal operators’ experience. As the rules include so-called third-party access, it is open to global gas supply market.
Any client will be able to book the capacity of an LNG terminal for LNG regasification and the supply of gas to Lithuanian and other customers throughout the world as well as small scale LNG activities, such as LNG ship bunkering. The rules will soon be submitted for approval to the Board of SC Klaipedos Nafta, the company who have implemented the Lithuanian LNG terminal project.
After the Board of the company approves the main terms and conditions of the rules approved by the NCECP, and after the General Manager of the company approves the rules, the company will publish the rules and start the procedure for allocating the LNG terminal capacities.
The company stressed that the rules were as important as the construction of the entire terminal including floating storage regasification unit (FSRU) vessel. Without them, it said, the terminal could not be operated or its capacity allocation process started. It was a herculean task for SC Klaipedos Nafta specialists, who started the process as early as possible in order to ensure the terminal’s start-up immediately after construction. In addition, the company announced a voluntary capacity booking market consultation to maintain maximum transparency and attractiveness of the future terminal’s users who had the opportunity to comment or advise before the final rules where prepared.
The first terminal user contracts will be signed in June or July and capacity will be divided each year. The LNG terminal’s website www.sgd.lt will publish the terminal’s available capacity.
After regasification in the FSRU, gas will be supplied through the natural gas transmission system operated by SC Amber Grid to the users. After loading to LNG bunkering ships or smaller LNG gas carriers, the LNG will then to be transported to neighboring ports.
The terminal will begin operating at the end of this year. It is the first Baltic LNG terminal and will open the gate to the global gas market. Currently, Lithuania has only one gas supplier and is dependent on it for its energy. The terminal will help to diversify energy sources.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11042014/lithuanian_lng_terminal_approves_rules/