Energy, Gas, Legislation, Lithuania

It establishes the procedure and conditions of use of the liquefied natural gas (hereinafter, LNG) terminal, requirements for persons that intend to use the LNG terminal, their rights, duties and liability, as well as other special requirements, related to the activities of the LNG terminal and its use for bringing LNG and unloading it to the LNG terminal, regazifying LNG and delivering it to the natural gas transmission system or transshipping it into LNG carriers, Klaipedos Nafta said in a statement.

After the Board of the company approves the main terms and conditions of the Rules approved by the NCECP and after the General Manager of the Company approves the Rules, the Company will publish the Rules and start the procedure for allotting the LNG terminal capacities.

According to the plan, the procedure will be started on April 30 of this year and contracts with the first users will be signed in June or July this year.

The company, seeking to attract users of the LNG terminal and to satisfy expectations of consumers in the market, has calculated and is announcing preliminary prices of services to be provided by the LNG terminal. They were calculated according to the Methodology of Setting State Regulated Prices in the Natural Gas Sector approved by Resolution No. O3-367 of the NCECP, dated September 13, 2013. The upper limits for prices of the LNG terminal services and specific prices are set and announced by the NCECP.

Referring to the Methodology of Setting State Regulated Prices in the Natural Gas Sector, the preliminary tariffs of the LNG terminal services are expected to be as follows: the price of liquefying (LNG regazification) service (it is established every year and adjusted annually) is LTL 0/MWh (VAT excl.), the service includes mooring of the incoming LNG carrier, unloading LNG into the LNG terminal, temporary storage and regazification. The price of LNG transshipping service (it is established for five years) is LTL 3.45 – 5.6/MWh (VAT excl.), the service includes mooring of the incoming LNG carrier, unloading LNG into the LNG terminal, temporary storage and LNG transshipment into the outgoing LNG carrier. As indicated above, these tariffs are preliminary and have not been approved by the Board of the Company or the NCECP.