AB KLAIPĖDOS NAFTA SIGNED A LONG-TERM OIL PRODUCT LOADING AGREEMENT

KN (AB Klaipėdos nafta), the operator of oil and liquefied natural gas (LNG) terminals, and K2 SAGL, a company registered in Switzerland, signed a long-term agreement regarding services related to the transfer of oil products at the KN oil terminal.

According to the long-term agreement signed between the companies, K2 SAGL will load oil products through the KN terminal under take-or-pay conditions, which means that during the agreement period K2 SAGL undertakes to reload a certain quantity of freight.

KN CEO Mindaugas Jusius notes that conclusion of one more agreement proves that the investment direction chosen by the company is correct and the market demand also indicates this.

“The market itself dictates changes in infrastructure – it has been expanding, the volume of freight, its types and the number of clients is increasing. One more agreement shows that investment projects implemented by KN, which enable not only developing the scope of operations of the oil terminal, but also receiving a wider range of freight, already create added value for the company. In general, with uncertainty in the global market of oil products and a particularly harsh competitive environment, attracting a new client to Klaipėda is a big and important achievement,” says Mr. Jusius.

Last year, the major share of the company’s investments were directed to the development of Klaipėda oil terminal (new containers were built) and the construction of the LNG reloading station. In 2017, investments totalled EUR 32.9 million, the first stage of investments envisaged in the company’s strategy was accomplished and second stage works commenced.

According to investment stage II, there are plans to build 10 new containers, a new unloading rack and a new railway track.

After these projects are implemented, KN oil terminal will not only be able to reload bigger quantities of oil products, but also accept a wider range of oil products and their component types for reloading at a time.