In preparation for buying a floating storage and regasification unit (FSRU) for Klaipėda LNG terminal in Lithuania, AB Klaipėdos Nafta (KN) is seeking input from potential solution providers
This consultation is part of the FSRU procurement process, which aims to familiarise potential solution providers with the forthcoming vessel acquisition tender planned for H2 2021.
According to Lithuanian government law, KN must ensure the operation of the LNG terminal until 2044. This law obliges KN to acquire and own the FSRU, upon choosing the most economically advantageous solution by the end of 2024.
The European Commission has approved, under EU state aid rules, a Lithuanian measure to issue a state guarantee to secure a loan not exceeding €160M (US$190M) for KN to purchase the FSRU.
“Klaipėda LNG terminal consolidated the country’s energy independence, opened access to the global natural gas market and served as a tool for natural gas price pressure in the region” said vice-minister of energy Inga Žilienė. “It is important to ensure an alternative source of natural gas imports and to maintain energy security and independence. Trends in natural gas consumption show that Klaipėda LNG terminal will play an important role in ensuring competitive, long-term and secure LNG supply to Lithuania and the region, as well as developing small-scale LNG trade and transportation by sea and road transport, and thus contributing to the goals of the green economy,” said Ms Žilienė.
Klaipėda LNG terminal has been operating since 2014. The 2014-built FSRU Independence is leased by KN from Höegh LNG for 10 years, with an option to purchase.
To implement the tasks assigned by the state, KN plans to start the procurement process of the FSRU in H2 2021. The best bid received during the procurement process will be compared to the current solution according to the established cost-effectiveness criteria.
Built by Hyundai Heavy Industries and fully capable of operating as an LNG carrier, Independence is equipped with GTT Mark III membrane containment technology, with a cargo capacity of 170,132 m3.
“Before announcing the market consultation, we conducted a study with the help of external experts, during which we were able to define certain technological and commercial frameworks for future procurement,” explained KN chief executive Darius Šilenskis. He said based on the information gathered during the study, KN will be able to provide technical parameters for the FSRU, detailing the existing infrastructure – jetty and gas pipeline and other important details – to provide full transparency during the procurement process and encourage potential suppliers.
After completing the FSRU procurement process, an additional procurement for operations and maintenance services will be conducted.
During the market consultation, indications for draft procurement documents are expected from the market by 3 May 2021. Following the market consultation, the acquired information will be analysed and a decision on the next steps in the vessel acquisition process will be taken, said KN.
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