PGNiG has secured a regasification capacity at the Lithuanian LNG terminal. This will provide the company with the ability to import over 0.5 billion m3 of natural gas per year through the terminal. The reservation period is 10 years.
Klaipedos Nafta (KN) – the operator of the LNG terminal in Klaipeda, Lithuania – has concluded long-term regasification capacity allocation procedure at the Lithuanian LNG terminal. PGNiG has been awarded with capacity that will allow the company to regasify 6 TWh of liquefied natural gas per year, which is equivalent to over 0.5 billion m3 of gas after regasification. The reservation is for the period from 1 January 2023 – 31 December 2032.
“LNG plays a fundamental role in the supply diversification strategy of both Poland and Lithuania. Having secured the long-term reservation of regasification capacity at the terminal in Klaipeda, PGNiG will be able to use its expertise in LNG trading to strengthen the availability of gas for customers in both countries. I am convinced that the cooperation between Klaipedos Nafta and PGNiG will not only contribute to the business plans of both companies, but will also enable further integration of gas markets in this part of Europe,” said Iwona Waksmundzka-Olejniczak, CEO of PGNiG SA.
“We are glad that PGNiG has successfully started using LNG terminal in Klaipeda earlier this year and expressed their interest in the long-term commitment. Allocation of the long-term capacity extends our future cooperation and will further contribute to the enhanced energy security of the region and efficient utilisation of the infrastructure in Klaipeda,” added Darius Šilenskis, KN CEO.
PGNiG has started to use Klaipeda LNG Terminal earlier this year. The first LNG cargo ordered by the PGNiG Group was delivered to the Lithuanian FSRU on 6 May 2022. Since then, PGNiG has received six deliveries at the facility. After regasification, part of the cargo was sold to customers from the Baltic States, while the rest was transported to the Polish market via the Gas Interconnection Poland–Lithuania, which was launched in May 2022.
The long-term reservation of regasification capacity at Klaipeda LNG terminal is a part of the PGNiG Group's strategy for the LNG market. The company's LNG contract portfolio includes, among others, free-on-board (FOB) contracts, which stipulates that a buyer is responsible for receiving and transporting a cargo from a gas liquefaction terminal. It is also up to buyer to decide on a port of destination of the de-livery. PGNiG will thus be able to direct LNG cargoes not only to the Polish Swinoujscie regasification facility, but also to other terminals, including Klaipeda.
Read the article online at: https://www.lngindustry.com/regasification/03102022/pgnig-with-long-term-reservation-of-regasification-capacity-at-klaipeda-terminal/