1
2
FACILITIES IN KLAIPEDA
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FSRU INDEPENDENCE
SINCE 2014 10
LNG RELOADING STATION
SINCE 2017 10
4
WE LEAD THE REGION TOWARD NEW BUSINESS OPPORTUNITIES
We have created the value chain of Klaipėda LNG terminal for the Baltic Sea
region, and we seek to earn maximum profit from additional activities.
In Klaipėda, KN operates a liquefied natural gas distribution station – an above ground LNG terminal operated on the third-party
access basis. It launched its activities in 2018, and it has 5 LNG tanks with the capacity of 1 000 m3 each.
LNG
RELO
AD
ING
STA
TIO
N S
ER
VIC
ES
LNG TRANSPORTATION
Reloading of liquefied natural
gas from gas carriers to the
LNG distribution station.
LNG STORAGE
Storage of liquefied natural gas
in the tanks of the LNG
distribution station.
LNG LOADING OPERATIONS
LNG loading to LNG trucks,
vessels capable to ship LNG as
cargoes and bunkering of
LNG-engined vessels.
LNG ISO TANKS
LNG can also be loaded to
standard-size tanks compliant
with ISO requirements, which
can be transported by rail or
road.
Usage of the terminal
5
6
Import of gas to Lithuania
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
January February March April May June July August September October November December
Booked capacity
Spare capacity
avera
ge
Nm
3/
day
2019 Approved LNGT regasification schedule + additional capacity booking forecast
2016
2015
2017
UTILIZATION OF KLAIPEDA LNG TERMINAL
2018LNG cargo delivery
Reload operation
Forecast delivery/reload
7
2019 4 4 5 7 4 5 5 42
422
Use of LNG Terminal in Klaipeda
Klaipėda LNG Terminal
2015 2016 2017 2018 2019 Prognozė
Regasif. mlrd. Nm3 0.5 1.3 1.1 0.77 1.67 1.2
Usage of the
terminal13% 35% 30% 20.5% 44.6% >30%
Terminal users >5
Users of reloading
services- - Few
Outreach markets
Reloading markets - - Few countries
LNG Reloading stattion
Users of LNG
reloading station- - Few users
Users of LNG
reloading to trucks- - >5 companies > 10 companies Few users
LNG value chain
Positive effect
9
Effect on the gas import price
10
Gas import price / Ignitis
Gazprom discount Forecast
MARKET BENEFITS BROUGHT BY THE FSRU INDEPENDENCE
– Ended the 100% reliance on monopoly supplier– Transparent third party access
mechanism
– Effective price cap– Baltic gas users have access to
international LNG markets
– Near-complete ability to supply the gas market need– Combined with Incukalns UGS for
seasonality
– Access to clients with limited size portfolios– Joint use of LNG in the terminal 11
Balticconnector
From 2020
GIPL
From 2021
FSRU Independence
4 bcm import capacity
2,3
bcm
1,3
bcm
0,5
bcm
Incukalns UGS
15
bcm
33
bcm
Poland
Ukraine
3
bcmFinland
FSRU TERMINAL ENABLED
SMALL SCALE MARKET OPPORTUNITIES TO DEVELOP
Designated supplier
Commercial gas
suppliers
Designated supplier
Commercial gas
suppliers
Small-scale break
bullking
Truck loading
Designated supplier
Commercial gas
suppliers
Small-scale break
bullking
Truck loading
Designated supplier
Bunkering and feeding
satellite terminals
Single-user LNG terminal
Multi-user LNG terminal Break-bulking LNG terminal
Full regional LNG valuechain
2015 2016 2017 2018
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FUTURE PERSPECTIVES
Lithuanian market integrated with other Baltics and Finland
Map
Lithuanian market not integrated with any market
Lithuanian market integrated with Poland
Wholesale price
> No cross-border tariffs, Baltics and Finish prices adjust
> New price expected to be lower than Lithuanian price before
> Cross-border tariffs between Lithuania and its neighbors
> Lithuanian price remain the same, ceteris paribus
> No cross-border tariffs, Polish and Lithuanian prices adjust
> New price expected to be higher than Lithuanian price before
Risk > New import infrastructure can decrease LNG competitiveness, but chance for add. terminal low
> Other integrated markets decrease competitiveness of LNG via KN LNG terminal
> New import infrastructure can decrease LNG competitiveness without partnering
Estonia
Finland
Latvia
Lithuania
Poland
to Russia
Belarus
Estonia
Finland
Latvia
Lithuania
Poland
to Russia
Belarus
Estonia
Finland
Latvia
Lithuania
Poland
to Russia
Belarus
Market demand
> Latvian, Estonian, Finish market increase from 4 to 5 bcm/a in 2030
> Integr. market 8 bcm/a in 2030
> Lithuanian market increases from 2 to 3 bcm/a in 2030
> Polish market increases from 19 to 21 bcm/a in 2030
> Integrated market 23 bcm/a in 2030
Source Roland Berger
Integrated market development
Long term LNG supply: solution for 2044
– 2018 08 20 Decision of the Government on the long term LNG supply option with the highest benefit for LT gas consumers
– 2018 12 18 Adoption of the necessary legal amendments in the Parliament
– 2019 09 19 EC issued state aid clearance for Stage I loan (supplement reduction). Link to Stage II (purchase) established
– 2019 10 24 KN board took principal decision on FSRU purchase + decision on LNG Supplement reduction since 2020
– 2019 11 15 expected signing agreement with NIB on loan for supplement reduction
– 2019 11 28 expected State guarantee approval on the loan (for Stage I) by the Government and Parliament
– 2019 12 12 expected NIB decision on the loan for Stage II (FSRU purchase)
– 2021 04 30 expected EC state aid clearance for Stage II (FSRU purchase) loan
– 2022 12 31 expected final decisions on FSRU acquisition by the KN Board
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Cooperation options
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COOPERATION OPTIONS WITH EAP COUNTRIES
– Alternative large scale supply option
– Small scale supply option to off grid,
transport
– Sharing know-how on:
– terminal project development
– setting proper regulation
– O&M services, co-investment
– Promotion and employment of EU LNG
strategy
www.kn.lt