“KN Energies” signed a contract with “Independence” operator “Hoegh LNG Klaipėda”. Business

“Hoegh LNG Klaipėda” won the competition of the technical operator of “Independence” last year, beating two international shipping companies. Thanks to the long-term partnership and constructive cooperation of both parties, it was possible to successfully finalize the agreements and sign the contract. The newly concluded contract reflects the changed limits of the parties’ responsibilities: “KN Energies” becomes the owner of the ship, and “Hoegh LNG Klaipėda” – the technical operator of the ship.

According to the contract, “Hoegh LNG Klaipėda” has been entrusted to ensure the technical management and maintenance of the LNG storage vessel for five years, with the possibility of extending the cooperation for another five years.

„Hoegh LNG“ nuotr./„Independence“

“After the change in the geopolitical situation, the last couple of years have clearly shown that the Klaipėda LNG terminal is not only the main source of gas supply for Lithuania, but also an infrastructure of regional importance that ensures gas supply to other countries as well.

With the signed contract, we are implementing the decision of the State of Lithuania to purchase an LNG storage vessel and to ensure its continuous operation following the end of the lease contract. I am sure that by choosing a reliable partner with many years of experience in the management of LNG storage vessels, we will be able to smoothly take over the ownership of the vessel and ensure the safe and reliable operation of the terminal”, says Darius Šilenskis, CEO of KN Energies.

The maximum contract period stipulated in the agreement covers ten years, and the maximum contract amount that can be used for this period is 225 million. euros. It consists of fixed and variable operating costs of the storage vessel.

The fixed part of the costs, which consists of the crew’s remuneration and maintenance costs, apart from the taxes applied in Lithuania, the fee to the operator for the maintenance of the ship, will amount to regarding 5 million. euros per year.

Variable costs, as before, will depend on the repair needs of the storage vessel, the volumes of gasification and the price of emission permits directly related to them, and other components. Variable costs related to the technical maintenance and repair of the ship, ensuring a sufficient amount of spare parts, the need for pollution permits, will be planned annually and reimbursed according to the fact.

Variable costs are directly correlated to LNG terminal occupancy. Therefore, the estimated maximum value of the contract is indicative, and the actual costs incurred will be calculated according to the real situation.

After taking over the ownership of the storage vessel by KN Energies and ensuring its operation with an external service, the price of the services for the terminal users will not change substantially. The forecasted average gasification rate for 2025-2033 is EUR 1.77/MWh (regarding EUR 0.02 per cubic meter of gasified natural gas) and is lower than the rate approved in 2024 – EUR 1.83/MWh.

in 2022 following establishing cost-based LNG terminal pricing and allocating capacities for the long term, the Klaipėda LNG terminal collects regarding half of its revenue from customers abroad, which for the second year in a row means that the KN share in the LNG security component is zero.