Public consultation regarding amendment to the Regulations for use of the LNG terminal

KN, in accordance with the provisions set forth in the Rules on public consultation approved by the National Energy Regulatory Council (resolution No. O3-350, dated 28th of October 2011) is announcing a public consultation on the draft of the amendment of the Regulations for the Use of Liquefied Natural Gas Terminal (hereinafter – the Draft Regulations).
 
Changes made in the Draft Regulations:
 

• Two long-term capacity allocation procedures will be announced: 1) 9 TWh of LNG regasfication capacity during each Terminal Gas year, divided into 3 capacity packages of 3 TWH each, for the period of 2025 – 2032 (including); 2) 28 TWh of LNG regasfication capacity during each Terminal Gas year, divided into 7 capacity packages of 4 TWH each, for the period of 2033 – 2044 (including).
• The maximum limit of LNG regasification capacity that can be allocated to one Applicant is increased (up to 2/3 of the Nominal capacity of LNG Terminal, i.e. about 22 TWh during each Terminal Gas Year);
• Technical changes are being made in several clauses related to the activities of Designated Supplier, anticipating expiration of these provisions in December 31st, 2024.
• In process of LNG congestion management, corrections are made by refusing the 5% of allowed deviation assessment, if the provided capacity is refused by the user‘s initiative and the LNG cargo is not delivered, i.e. take-or-pay principle would apply to the full scope of the capacity provided;
• Technological condition of the LNG Terminal when necessary must be ensured not only by the Designated Supplier, but also by other clients who are using the Terminal.
• In Annex No. 1 Inter Use Terminal contract, as fas as LNG regasification capacities are concerned, which are expected to be provided from the beginning of 2033;
• In Annex No. 6 contract for use of LNG Terminal: technical corrections in order to respond to changes made in the Regulations, and a new basis for terminating the contract which allows the right to the Operator to unilaterally terminate the contract with the clients after notifying the clients at least 2 calendar years in advance. This basis for terminating the contract is associated with long period of capacity allocation (until 2044).
• And other;

AB Klaipėdos nafta requests to get acquainted with the Draft Regulations and to submit comments and suggestions by 7th of July 2023. Please submit comments and suggestions directly to AB Klaipėdos nafta by e-mail: info@kn.lt or paslaugos@kn.lt.
 
At the end of the period of public consultation conducted by the company, the company will evaluate the comments and suggestions received during the consultation and submit the final edition of the Regulations to the National Energy Regulatory Council.
 
The Draft Regulations with highlighted corrections:

• Regulations for use of the LNG terminal 
• Annex No  1 – Inter-Use Terminal Contract
• Annex No. 4 – Long-term Terminal Capacity Allocation Request
• Annex No. 6 – Contract for Use of LNG Terminal
• Annex No. 7 – List of formulas for calculation of Terminal service prices
• Annex No. 18 – Long-term capacity allocation procedure 2025-2032
• Annex No. 19 – Long-term capacity allocation procedure 2033-2044

If you have any questions regarding the public consultation or the amendments provided for in the Draft Regulations, please contact the responsible persons:

• Logistics Manager Nerijus Strazdauskas, e-mail N.Strazdauskas@kn.lt, tel. +370 630 04305;
• Head of Regulated Activities Vaidotas Bručkus, V.Bruckus@kn.lt, tel. +370 695 48897.