• 2020 May 22 16:26

    Klaipėda LNG terminal is an established player in the global market

    The second largest LNG cargo this year will be imported from the United States and regasified through the liquefied natural gas (LNG) terminal in Klaipėda. About 155 thousand cubic metres of LNG is delivered by the gas carrier Energy Liberty, which is expected to reach the terminal tonight, from May 22 to 23, KN says in a press release.

    The favorable situation in the international LNG market determined the possibility of purchasing and importing a cargo of this scale from the US Klaipėda for the commercial users of the LNG terminal. Since the beginning of the year, there has been a trend of commercial users of the terminal purchasing natural gas imported to Lithuania for a price that is lower than the weighted average price of all LNG transactions concluded under spot contracts (TTF index, see chart).

    The gas carrier Energy Liberty arrives in Klaipėda from Sabine Pass LNG terminal in Louisiana, USA. This is the third LNG cargo from the US and the fifth cargo in total for this year. Prior to the arrival of this cargo, the LNG imported from the US accounted for 5.47% of the total amount of imported LNG at the Klaipėda LNG terminal, since the start of the terminal's operations. The American LNG was imported to Lithuania for the first time in August 2017,  reaching our market from the Sabine Pass terminal.  Earlier this month, 125,000 cubic meters of LNG arrived in Klaipėda from the US.

    The intensification of LNG imports from the US was determined by the extraordinary situation in the LNG market, when many European gas storage facilities were maximally filled and the cargos of the US producers were available to market participants at attractive prices. The Klaipėda LNG terminal, in turn, provides the terminal users with the opportunity to import LNG from producers in different regions, in response to the changing market situation of spot commodities, thus reducing the cost of energy resources.

    According to Dr Arūnas Molis, director of KN LNG, the regionality of the LNG terminal in Lithuania, the flexibility of gas supply and the transparent pricing have a positive impact on LNG demand in the region by taking advantage of the global LNG market opportunities.

    “In terms of LNG trade, the US has been a balancing source of the world LNG supply, and Europe has been a balancing source of demand for the past few years. New LNG liquefaction plants are being built and put into operation in the US, resulting in more flexible cargos, which are not necessarily contractually linked to the final buyer. Such cargoes have strong market demand. In this context, our LNG terminal is already recognized as an established market player and terminal users can choose their import sources flexibly and based on their current needs. And not only in Lithuania or the Baltic Sea region as before - according to a recent report published by the EC, Klaipėda LNG terminal, particularly after the connection with Poland, is a competitive way to supply LNG to Ukraine, Belarus and other EU Eastern Partnership countries that see the perspectives of LNG use in the sectors of industry, transport and other sectors”, said Dr. Arūnas Molis.

    According to the Director of Klaipėda LNG of KN, considering that during a three-month analysis, the average TTF size was higher than the weighted average price of natural gas imports in Lithuania, it can be assumed that terminal users with long-term contracts purchase LNG cheaper. “LNG terminal users choose this gas import alternative themselves by comparing the costs of the product and the entire logistics chain with the corresponding costs of gas imported through the pipeline. Our calculations show that with this alternative, natural gas users receive greater financial benefits per year than the total annual costs associated with the terminal. This phenomenon is particularly pronounced when there is a surplus of gas on the market and it is very important for suppliers to sell their stocks. In this context, it is natural and understandable that we should establish Lithuanian measures to promote the use of LNG, for example, in the DNA plan of the Lithuanian Government for the Future Economy,” says A. Molis.




2020 May 28

18:37 CMA CGM ends ESS from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
18:07 PortXchange results in shorter idle times on departure at APM Terminals Rotterdam
17:24 Independent Container Line starts new service from Cork to USA
17:20 Antwerp@C investigates potential for halving CO2 emissions in Port of Antwerp by 2030
16:49 Nevsky Shipyard launches lead ferry of Project PV22, Admiral Gennady Nevelskoy
16:17 Finland's new Water Traffic Act enters into force in June
16:05 Lubrizol joins the Getting to Zero Coalition
15:56 Wärtsilä high-efficiency propulsion solutions selected for special high-speed ferry
15:46 ABP keeps Britain trading in the safest way possible
15:02 Bunker prices show no considerable changes at the Far East ports of Russia (graph)
14:38 Bunkering tanker intended for Baikal lake delivered to the customer
14:00 WinGD wins type approval for biggest and most powerful ever dual-fuel engines
13:00 Gasum partners up with the sustainable transport solution provider company Samskip
12:30 More Konecranes BOXHUNTER RTGs to Vietnam
12:00 Konecranes and Fluidmesh join forces to deliver world-first 100% wireless Automated Rubber Tired Gantry crane system
11:30 EPS and Equinor set sights on a trio of newbuild LPG dual-fuel vessels
11:09 Boskalis awarded two dredging contracts in Finland
10:51 Oil prices continue going down
10:30 DNV GL releases first ever traceability standard for reclaimed plastic
10:09 Port of Stockholm announces arrival of the first container ship at Norvik Port
09:44 CMA CGM announces Overweight Surcharge (OWS) from Asia to North Europe
09:37 Baltic Dry Index on May 27
09:19 Rosmorport released young trout into Ladoga lake
08:54 MABUX: Bunker market this morning, May 28

2020 May 27

18:36 Nexans wins major subsea HVDC cable contract from Greece's Ariadne Interconnection S.P.S.A
18:06 The lock gate of the Pierre Vandammelock at the port of Port of Zeebrugge gets decoupled and transported to the inner harbour for renovation works
17:36 Sales of “Honesty” - device to measure the level of liquid in tanks - exceeds 1,000 units
17:06 ZIM posts Q1 2020 results
16:58 NOVATEK-Murmansk obtains resident status at Advanced Special Economic Zone
16:31 Transport Ministry addressed with proposal to introduce criteria for coal ports to be acknowledged as dedicated ones
16:04 UN agencies call for urgent action on crew changes and keyworker designation for sea and air workers
15:59 Cai Mep International Terminal welcomes maiden call of TP17 service
15:13 Traficom extends validity of certain seafarers’ competency and proficiency certificates
14:37 Krasnoye Sormovo shipyard launches Pola Agata of Project RSD59
14:02 First global standard for ship hull cleaning essential for marine ecosystems
13:44 Experts consider development of autonomous shipping as advantage for seafarers
13:29 Introduction of autonomous cargo carriers en masse expected within five-ten years
13:02 DEME Offshore successfully completes the inter-array cable laying works at the SeaMade offshore wind farm
12:45 Industry experts discussed trial project on unmanned navigation in Russia
12:30 Multipurpose Reloading Complex in Ust-Luga: environmental performance conforms with standards
12:01 Payment term for sea port dues remains 30 days for the time being in the Port of Rotterdam
11:03 Wärtsilä upgrades the SCANTS Simulation Complex to provide advanced training at the United States Coast Guard Academy
10:32 Alexeev’s Hydrofoil Design Bureau launches fifth Valdai 45R hydrofoil for Nizhny Novgorod Region
10:05 Oil prices decrease by 0.17%-0.32%
10:03 HMM Algeciras, the largest container ship worldwide, on its way to Rotterdam
09:44 Baltic Dry Index on May 26
09:18 Bunker prices continue going up at the port of Saint-Petersburg, Russia
09:11 CMA CGM announces Overweight Surcharge (OWS) from Asia to the Mediterranean & Black Sea
09:02 MABUX: Bunker market this morning, May 27
08:19 Diana Shipping announces time charter contract for m/v Crystalia with Glencore

2020 May 26

18:32 Diana Shipping signs a term loan facility with ABN AMRO Bank to refinance two separate existing loans with the bank
18:06 Jotun hull skating solutions tested by Wallenius Wilhelmsen
17:31 Bunker prices are going up at the Far East ports of Russia (graph)
17:05 CMA CGM ends PSS for exports from West Med, North Europe, Scandinavia & Poland, Baltic, Italy Adriatic & Black Sea to Mayotte, Seychelles, Comoros & Madagascar outports
16:30 Damen announces Electric Cutter Suction Dredger 650
16:05 Aker Solutions starts CCS test program at Preem refinery in Sweden
15:35 Norsepower Rotor Sail installation completed on Scandlines ferry in just hours
15:01 Baltiysky Zavod lays down forth 60-MW icebreaker of Project 22220
13:59 Mitsui O.S.K. Lines and LNG Terminal Wilhelmshaven sign a contract to build and charter an LNG terminal ship
13:42 RF Government approves Customs Service Development Strategy till 2030