New version of the Regulations for use of the liquified natural gas terminal is approved

AB „Klaipėdos nafta“, Klaipėda LNG terminal operator, informs that on 5 August, 2022, the National Energy Regulatory Council (NERC) approved a new version of the Regulations for use of the liquified natural gas terminal (hereinafter – the Regulations).

1. Higher financial requirements for Applicants seeking to participate in the long-term LNG terminal capacity allocation procedure (by one step raising the minimum credit rating and adjusting the size of the bank guarantee for the validity of the proposal, which becomes equal to the size of the requested long-term LNG regasification capacity).
2. Changes to the capacity allocation principles applied in the long-term LNG terminal capacity allocation procedure (applying legal obligations for the LNG terminal operator to ensure the natural gas demand for the groups of natural gas consumers identified in the legislation).
3. Changes to the capacity allocation principles applied in the annual LNG terminal capacity allocation procedure (application of the principle of proportionality (pro rata)).
4. Changes to the principles for the allocation of LNG regasification capacity of spot cargo and LNG reloading capacity, including the timing and prioritisation of requests for capacity, in order to meet the obligations set for Terminal Operator in the legal acts (to ensure the fulfilment of the natural gas demand for the energy producers providing isolated operation of the electricity system or other services to the transmission system operator for the purpose of ensuring the safe and secure operation of the electricity system)
5. A new Annex 17 "Main conditions for Long-term LNG regasification capacity allocation procedure for a period of 2023-2032" is newly added to the list of Annexes to the Regulations. The Annex contains the specific conditions for the allocation of long-term capacity (amount of capacity to be allocated, period of allocated capacity, minimum allocation thresholds, etc.) which was determined based on the Regulations.
6. Amendments to the procedure of preparation of LNG terminal's draft annual schedule and the annual schedule and allocation of arrival periods for LNG cargoes, which stipulates the procedure for use of long-term LNG regasification capacity for delivery of LNG cargoes 
7. Other technical, editorial changes and additions.

Respectively, capacity allocation procedures for the year 2023 at Klaipėda LNG terminal will be carried out in September 2022, after the decision of NERC regarding the approval of the Regulations will enter into force.

The LNG terminal operator will inform the market participants about the exact dates of capacity allocation procedures separately, in accordance with the terms in the Regulations. 

Regulations, approved by NERC, will come into effect 30 days after their approval.