Public Consultation on the Draft Amendment to the Regulations for the Use of the Liquefied Natural Gas Terminal

In accordance with the currently applicable version of the Resolution No. O3-350 of 28 October 2011 of the National Energy Regulatory Council (NERC) "On the Approval of the Regulationss for Public Consultation on Draft Legal Acts of the National Energy Regulatory Council", KN ENergies is launching a public consultation on the draft amendment to the Regulations for the Use of the Liquefied Natural Gas Terminal (hereinafter – the Draft Regulations).

Key amendments the Regulations:
The Company, seeking to maximize the utilization of the LNG Terminal capacities and to ensure the efficient allocation of the Spot cargos, is initiating amendments to the Regulations. These amendments establish that, in the case of LNG regasification services where there are multiple Applicants’ or Terminal Users’ Requests for the allocation of Spot cargo regasification capacities, the allocation order will be determined not by the earliest submitted request (i.e., on a “first come, first served” basis), but by the highest offered LNG regasification service value.
Accordingly, the following changes to the Regulations are being introduced:

• New Clause 75 is added, stipulating that the Operator, when allocating Spot cargo LNG regasification capacities, shall publish on its website a notice regarding such capacity allocation. The notice shall be published no later than 7 calendar days prior to the planned start of the allocation and shall specify:
  • the period for which the capacities are allocated;
  • the preliminary size of Spot cargo capacities;
  • the utilization period of the capacities and the cargo Arrival Period;
  • the start and end dates for the submission of capacity Requests, the deadlines for their evaluation, and the conditions and procedures for extending these deadlines;
  • any other relevant information related to capacity allocation.
• Clause 78 of the Regulations is amended to specify that the queue for Spot cargo LNG regasification capacities is formed according to the highest LNG regasification service values indicated in properly submitted Requests. The value is calculated using the following formula V_SGD = Q × (P_Reg + P) [EUR], where:
  • V_SGD – the LNG regasification service value specified in the Applicant’s request, EUR;
  • Q – the specific quantity of LNG regasification capacity requested (in energy units, MWh);
  • P_Reg – the regulated LNG regasification service price (EUR/MWh) valid at the time of Spot cargo delivery and capacity utilization;
  • P – the additional price premium (rounded to euro cents) specified in the Applicant’s Request, EUR/MWh.
• New Clause 79 is added, establishing that the allocation of Spot cargo capacities based on the highest request values is applied only in cases of Terminal Congestion. If submitted Requests include additional price premiums to the regulated LNG regasification price but no congestion occurs, the Operator shall consider these additional premiums as 0 EUR/MWh and offer the requested capacities to the Applicants.
• Clauses 74, 77, and 78 (including their sub-clauses) are also updated with technical changes concerning the submission, evaluation, and approval of Requests. The amendments stipulate that an Applicant or Terminal User intending to deliver a Spot Market cargo for regasification during the Gas Year must submit a request (as per Annex 5 of the Rules – Request for Annual, Spot cargo, LNG Reloading, and Biomethane Liquefaction Capacities) within the deadlines specified in Clause 74. Additionally, the Regulations provide flexibility for the Operator to adjust request submission deadlines in notices on the planned allocation of Spot cargo capacities, allowing for a more responsive approach to market conditions.

AB KN Energies invites stakeholders to review the Draft Regulations and submit comments or suggestions by 6 August 2025. Please send your comments and suggestions directly to KN Energies via email: info@kn.lt or paslaugos@kn.lt.

After the consultation period, the Company will evaluate the feedback received and submit the final version of the Regulations to the National Energy Regulatory Council.
 
For questions related to the public consultation or the proposed amendments:

• Vaidotas Bručkus, Head of LNG Commercial: V.Bruckus@kn.lt, +370 695 48897
• Ieva Žaunierienė, Head of Regulated Activities: I.Zaunieriene@kn.lt, +370 628 25394

 
Regulations:

• AB KN Energies Regulations for the Use of the Liquefied Natural Gas Terminal