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 proposed in the Draft Regulations:
- New definitions related to the Biomethane Liquefaction Service are introduced, such as Equivalent Liquefaction of Biomethane, Biomethane Liquefaction Service, Designated Authority , European Union Database for Biofuels (UBD), Guarantee of Origin, Liquefied Biomethane Gas, Liquefied Biomethane (Bio-LNG) Storage Service, Terminal Main Services, Terminal Additional Services, Sustainable Inventory, and Proof of Sustainability (PoS).
- The definition of a Conventional LNG Cargo is updated, changing 1,000,000,000 kWh to 1,050,000,000 kWh.
- An additional Clause 13 is introduced in the Regulations, distinguishing between the Terminal’s Main Services and Terminal’s Additional Services in separate subclauses. It is specified that, in addition to the currently provided regasification and transshipment services, a Biomethane Liquefaction Service is also available, the terms of which are defined in a separate commercial Contract of Biomethane Liquefaction Services. It is also stated that a temporary Bio-LNG storage service may be provided under a separate written agreement between the Company and the Terminal User.
- A new subparagraph 74.4 is added, stipulating that an Applicant or Terminal User wishing to request the Biomethane Liquefaction Service must submit the Application no later than five (5) working days before the planned date of use of the requested terminal capacities.
- The Regulations are supplemented with new subclauses under Clause 205, which provide that the procedure and conditions for payment for the Terminal Additional Services shall be established in the Contract of Biomethane Liquefaction Services, which must include the following provisions: the Operator shall issue and submit a VAT invoice to the Terminal User within ten (10) business days after the end of the reporting period (month), or, if the services are terminated earlier, within ten (10) business days from the last day of service provision. The Terminal User must pay the invoice within fifteen (15) calendar days from the date of its issuance. If the User identifies an error or inaccuracy in the invoice, they must notify the Operator in writing within ten (10) calendar days from the date of receipt, providing an explanation and/or supporting documents. Upon receiving such notification or identifying an error on its own, the Operator shall issue and submit a corrected invoice within ten (10) calendar days.
- Subparagraphs to point 206 are added, setting out the Creditworthiness Requirements or other means of securing obligations for the provision of the Biomethane Liquefaction Service. Specifically, in cases where the Terminal User has not ordered an LNG reloading service but holds actual LNG quantities in the Terminal's accounting and has or has transferred reloading capacity on the LNG reloading day, and the Terminal User's credit rating is either not determined or is below the minimum required rating, the Terminal User must provide the Company with a bank guarantee from a bank with a credit rating not lower than the Minimum Credit Rating or ensure the fulfillment of obligations via advance payment.
- Subparagraphs of points 210 and 216 are supplemented to regulate the submission and validity of security instruments for the Biomethane Liquefaction Service. It is stipulated that the documents must be submitted together with the signed Liquefied Natural Gas Terminal User’s Contract, Inter-Use Terminal Contract, the Biomethane Liquefaction Services Contract and/or the Special Conditions of these agreements. The security for the fulfillment of the contract obligations must remain valid until all obligations are fully fulfilled.
- The Regulations are also supplemented with a new Clause 273, which provides that, in cases where the Terminal User has signed the Liquefied Natural Gas Terminal User’s Contract, the Inter-Use Terminal Contract, the Special Provisions and/or the Contract of Biomethane Liquefaction Services, and there is a change in any of the contractual party’s details – such as name, registered address, bank account number, contact details, or other identifying information – the Terminal User shall notify the Operator of such changes in writing no later than within two (2) business days from the date on which the changes occurred.
- Point 74.1 of the Regulations is revised to better reflect practical cases. It now provides that a request for Terminal Capacity together with a monthly schedule application may be submitted not earlier than 90 calendar days, but at any time until the first correctly submitted request, and not later than 60 calendar days before the start date of the Arrival Period of the Spot Cargo indicated in the Annual Terminal Services Schedule.
Main changes in the Annexes to the Regulations:
- Annex No. 16 – Cargo Measurement Procedure Description – is supplemented to include a provision that when Bio-LNG is loaded into a tanker truck, the Terminal User must ensure that the quantity is clearly identified and calculated in the Quantity and Quality Report prepared by an Expert, using both lower and upper heating values.
- Annex No. 5 – Application for Annual or Spot Cargo Capacities – is supplemented, adding the option to also request Biomethane Liquefaction Capacities alongside other terminal capacities.
- Annex No. 7 – List of Terminal Service Prices and Formulas – is amended to provide that the Company will set a price for the Biomethane Liquefaction Service, which will be published on the Company’s website and/or provided in the commercial Contract on the Provision of Biomethane Liquefaction Services. It is also stated that the amount of the bank guarantee or prepayment must be equal to the value of the Biomethane Liquefaction service to be provided.
AB “KN Energies” invites stakeholders to review the Draft Regulations and submit comments or suggestions by 13 June 2025. Please send your comments and suggestions directly to AB "KN Energies" via email [email protected] or [email protected].
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:
- Nerijus Strazdauskas, Head of Logistics, email [email protected], ph. +370 630 04305
- Vaidotas Bručkus, Head of LNG Commercial, email [email protected], ph. +370 695 48897
- Ieva Žaunierienė, Head of Regulated Activities, email [email protected], ph. +370 628 25394
Regulations:
Annexes to the Regulations:
