Public consultation regarding amendment to the regulations for use of the Klaipėda 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:
 

• The definition of the Operator is updated in relation to the Company's change of legal name;
• The definition of the "Owner of the Floating Storage" is eliminated, as it is now assigned to and coincides with the Operator following the changes in the Regulations;
• A new definition of the "Technical Operator of the Floating Storage," is introduced;
• Considering that "Take or Pay" revenue is considered regular operating income, the classification of "Take or Pay" revenue as penalties is discontinued;
• Priorities for servicing LNG carriers that arrive simultaneously or outside of approved arrival periods are changed;
• The Regulations establish temperature requirements for LNG delivered to the Terminal, as well as other quality requirements for LNG: there must be no solid particles, impurities, foreign substances, or liquid components (e.g., aromatic substances, benzene (C6H6), carbon dioxide (CO2), methanol (CH3OH), etc.). In case of such discrepancies, the Operator shall have the right to stop or refuse to start LNG loading or unloading;
• In cases where the quality of the delivered LNG is close to the natural gas quality requirements set by the laws of the Republic of Lithuania, the Company may request the Terminal user to provide a gas quality variation simulation for the day of LNG delivery to the Terminal;
• The rules include changes regarding service limitations at the Terminal in case of unexpected terminal malfunctions not caused by the Operator and related changes in liability;
• The maximum limits of the Operator's liability for downtime, individual and general civil liability, and compensation for direct losses and actual expenses are added;
• Annex No. 6 of the Regulations regarding the operational management of cash flows includes changes to the payment terms for Terminal services (the payment term is shortened);
• It is foreseen that the insurance requirements for the Floating Storage will be transferred to the Operator, including Hull & Machinery insurance and P&I (Protection and Indemnity) insurance in the shipowners' mutual insurance (P&I) club;
• The 3rd Annex to Annex 3 of the Regulations, "LNG Carrier Nomination and/or Confirmation Request," has been adjusted – due to inflation, the security inspection fee, which is paid to the Technical Operator of the Floating Storage, has been revised to 600 USD (previously 400 USD);
• Other adjustments.

 
AB KN Energies requests to get acquainted with the Draft Regulations and to submit comments and suggestions by 4th of Novemver 2024. Please submit comments and suggestions directly to AB KN Energies by e-mail: [email protected] or [email protected].
 
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.
 
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 [email protected], mob. +370 630 04305;
• Head of LNG Commerce Vaidotas Bručkus, e-mail  [email protected], mob. +370 695 48897;
• Regulated activities specialist Sandra Grigaitytė-Gedvilienė, e-mail [email protected], mob. +370 664 66855.

Regulations

• Regulations for use of the LNG Terminal

Annexes

• Annex No. 1 – Inter Use Terminal Contract
• Annex No. 2 – Natural Gas Accounting Policy
• Annex No. 3 – Operators technical conditions
• Annex No. 4 – Long-term Terminal Capacities Allocation Requests
• Annex No. 5 – Annual or SPOT Terminal Capacities Allocation Request
• Annex No. 6 – Contract for Use of LNG Terminal
• Annex No. 7 – List of Terminal Services Prices and Formulas
• Annex No. 8 – Bank Guarantee Form to Secure the Validity of the Proposal
• Annex No. 9 – Agreement Regarding Transfer of Unused LNG Capacities
• Annex No. 10 – Request for annual schedule for base seasonal capacities allocation
• Annex No. 11 – Request for monthly schedule for base seasonal momentary capacities allocation
• Annex No. 12 – Day nomination for LNG regasification
• Annex No. 13 – Bank Guarantee Form to Secure Implementation of the Obligations of the Terminal User
• Annex No. 14 – Form of guarantee of Patronized Company for Guarantee of Obligations fullfillment
• Annex No. 15 – LNG Loading LNG Reloading Nomination
• Annex No. 16 – Cargo Measurement Procedure
• Annex No. 17 – Main conditions for Long-term LNG regasification capacity allocation 2023-2033
• Annex No. 18 – Long-term capacity allocation procedure 2025-2032
• Annex No. 19 – Long-term capacity allocation procedure 2033-2044