1
Renata Navikaitė
Head of Regulatory Services Division
Klaipėda LNG Terminal: Gateway to the Baltic Sea Gas Market
Photo A. Kubaitis
February 18, 2016, Klaipėda
2
Overview of Klaipėdos nafta and Klaipėda LNG terminal
KN as a diversified oil product and LNG terminal operator
40+ years of oil product terminal
operations
Successful fast track LNG
terminal project implementation
LNG reloading and bunkering
station project LNG bunkering vessel project
State fuel reserves
LNG terminal consulting projects
3
Overview of the Klaipėda LNG terminal
Successful operations after commissioning in autumn
FSRU Independence
Arrived on the 27th of October
2014
Commissioning cargo
Delivered 28th of October
2014
Commercial operations
First commercial send-out from 1st
of January 2015
First commercial cargo
Delivered 23rd of December
2014
4
5 Deck of FSRU Independence
Regasification unit
6
Naujausios nuotraukos iš statybų aikštelės
Construction of the jetty
High pressure gas platform Service platform
7
Naujausios nuotraukos iš statybų aikštelės Gas transmission
system Gas metering station
and control center
8
Overview of Klaipėdos nafta and Klaipėda LNG terminal
Key achievements
LNG terminal
launched
on time
Minimal
impact on the
environment
Security of
energy supply
Savings of
30 mln.
EUR
Professional
project team
Positive
public opinion
Prompt implementation
Financing by
EIB, NIB
Business
model
approved by
EU
Managed
international
public
tenders
Lithuania fulfills
N-1 standard
Positive
evaluation of 12 audits
European
Commission support
9
Commercial Operations of the Klaipėda LNG Terminal
Services of the Terminal
LNG reloading LNG regasification
Services
Start from the 1st of January, 2015.
New opportunities in 2016-2017
LNG bunkering and truck
reloading
LNG reloading station
• Minimal send out ensures constant operational availability
• All services are on a transparent third party access basis
• LNG cargo break-bulking
possibilities
LNG regasification tariff – 0,10
EUR/MWh
LNG reloading tariff – 1,14
EUR/MWh
• Capacities allocated before and during the Gas Year (October – October)
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Commercial Operations of the Klaipėda LNG Terminal
Terminal Business Model
Unused
capacity
Third Party Access
infrastructure
Terminal User
Unused
capacity
-
2.000.000
4.000.000
6.000.000
8.000.000
10.000.000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Terminal User
Terminal User
Terminal User
Terminal capacities are available via open booking procedure
(nm3/day)
• Currently 3 Terminal users
• Reserved capacities for Gas Year 2016 – 1.1 bln. nm3
• Terminal utilisation rate – 29%
Capacity available for traders
Average daily send-out
New gas year
11
LNG regasification/ pipe markets
Baltic-connector
GIPL
LNG ship reloading markets LNG trucking markets
Markets accessible starting the 1st of January, 2015
Markets accessible after regional interconnections are finished
Markets accessible after on-shore LNG reloading station is finished
Small & Mid-scale LNG terminals
(5.000-50.000m3; operational and under development)
Access to new Baltic Sea markets
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Access to natural gas markets in the Baltic sea region
• Klaipeda LNGT provides access to well interconnected natural gas
market of the Baltic States, including the Incukalns underground gas
storage facility
• Finish market is accessible after the completion of Baltic Connector
pipeline
• Polish market is accessible after the completion of GIPL pipeline
• Access to Ukrainian market is available once the transit is agreed
UKRAINE
GIPL
15
BCM/yr
LATVIA
POLAND
BELARUS
2.3
BCM/yr
FINLAND
Klaipeda LNG
terminal
LITHUANIA
Incukalns gas
storage
1.3
BCM/yr
0.6
BCM/yr
ESTONIA
Baltic-connector
to Finland
42.5
BCM/yr
3.7
BCM/yr
Third Party Access infrastructure
GIPL (Gas interconnection Poland Lithuania) and BalticConnector pipeline
Possible gas flows from Klaipeda LNG terminal
Natural Gas Consumption
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Gävle project
Expected start-up: 2018
Nynäshamn project
Operational from: 2011
Gothenburg project
Expected start-up: 2017
Tallinn-Muuga project
Expected start-up: 2017
Tallinn-Muuga project
Expected start-up: 2017
Haminan project
Expected start-up: 2017-
2018
Rauma project
Expected start-up: 2017-
2018
Pori project
Expected start-up: 2016
Manga project
Expected start-up: 2017-
2018
Regional hub in Klaipėda
Reload hub for the Baltic Sea region
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LNG reloading station in the port of Klaipėda
KN oil terminal
LNG supply route FSRU
LNG Reloading station
LNG Supply Route
LNG unloading
FSRU Independence
LNG LNG
LNG LNG
LNG reloading service LNG transportation
LNG reloading into LNG trailers
Integrated service LNG Reloading station
Flexible hose LNG dispenser
LNG trailer C-type containers
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Thank you for your attention.
16
0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
2013 2014 2015
Klaipeda LNGT in the Regional Gas Market
Security of Gas Supply- Price
FI
(28.67)
LT
(36.73) 18.25
Prices EUR, MWh (2014)
No data
< 21.00
21.00 – 25.00
25.01 – 29.00
> 29.00
TOP 5 end 2014
Price level
1. Lithuania
2. Estonia
3. Latvia
4. Greece
5. Slovenia
Comparison of EU wholesale gas prices (2014 Q4) vs July 2015
Source: DG Energy, GetBaltic, Latvijas Gaze, Elering
LV
(30.31) 21.21
EE
(33.29) 21.81
GR
(29.80)
SL
(29.25)
PL
(26.20)
Historical gas prices, 2013-2015
• World trend – gas prices are going down due to:
• Oil price crisis;
• Mild winters in the recent years;
• New sources of LNG – shale gas;
• Decreased demand in Asia as a result of
energy balance diversification.
• Regardless, dependency on a single gas supplier
translated to the highest price in the EU until the
end of 2014.
Lithuania RU-DE boarder
HH (USA)
Japan
EU avg import price
Eur/ MWh
17
20
22
24
26
28
30
32
34
36
38
2012 2013 2014 2015 H1
EU average RU-DE boarder Regional average Lithuania NBP+3.5
Average annual natural gas import price EUR/ MWh
Klaipėda LNG
Terminal is in
Operation
(LT, LV, EE, FI)
LNG price sets
natural gas price cap
2. Global Natural Gas Prices
A Cap for Natural Gas Prices in the Region
Sources: NCC,GetBaltic, Latvijas Gaze, Elering, Energiavirasto, The ICE, Indexmundi, ycharts, x-rates.com
Monthly prices are averaged to get the annual average price; Respective month exchange rates are used for currency conversions where needed; Reference for the last 3 months of 2015 H1 price in Lithuania is the GetBaltic fulfilled transaction
weighted average price for transactions carried out within a month; 3.5 EUR/MWh are added to the NBP price to represent LNG shipping, supplier margin and any other additional costs; 10.4 MWh/1000 nm3 natural gas for conversions where
needed.