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Klaipėda LNG TerminalServing the Regional Gas Market

Photo – A. Kubaitis

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Energy Security for the Whole Region

Third party access will spur competition

The terminal will help to diversify energy sources

Ensures security of energy supply for the Baltic countries

Import prices will reflect the global market price level

The LNG terminal in Klaipėda is the first gas infrastructure object to be completed in order to increase the energy security in Lithuania, other Baltic States and Finland.

According to the stress tests, performed by the European Commission in the fall of 2014, the Klaipėda LNG Terminal significantly increases the energy security in Lithuania.

Other countries are also encouraged to use the capacities of the terminal in order to diversify energy sources.

The European Commission has released an EU energy security strategy on 28 May 2014.

The objective of the new energy strategy is to increase the energy security of Europe’s energy supply.

Energy security can be implemented via following measures:

• completing the internal energy market with common legislative framework including third party access to the infrastructure;

• strengthening emergency and solidarity mechanisms and protecting critical infrastructure.

Photo K.Fedirka (FotoSkrydis)

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Impact On the Regional Gas Market

Markets accessible starting the 1st of January, 2015

LNG regasification markets

LNG ship reloading markets

LNG auto-trailer reloading markets

Baltic-connector

GIPL

Markets accessible after regional interconnections are finished

Markets accessible after on-shore LNG reloading station is finished (expected by the end of 2016)

Energy security for the Baltics states and for

Finland/Poland after the interconnections are

completed

Opportunity for market players to import gas from

the global market

Gas storage in Inčukalns creates an opportunity to capitalize on season LNG

price fluctuations

Availability to bring in spot cargoes and break-bulk

into smaller batches

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• Continued regulated minimum send-out – ensuring that the Terminal is constantly cooled-down and ready for service.

• Terminal capacities are available on the regulated Third Party Access via open capacity allocation procedure.

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New Services in the Region

LNG ship reloading

• Seasonal capacities

• Spot capacities

• Tariff – 1,14 EUR/MWh

LNG regasification

• Foundation capacities

• Seasonal capacities

• Spot capacities

• Tariff – 0 EUR/MWh (costs channeled via gas transmission tariff)

Services Starting from the 1st of January, 2015 Planning to start by the end of

2016

• On-shore LNG reloading station will constitute to break-bulking large LNG cargoes.

• LNG bunkering, LNG auto-trailer and LNG container reloading.

LNG reloading station

Possibilities for other traders Possibilities for other traders

Trader Trader Trader

Theoretical capacities of ~4bcm/annum

LNG on-shore reloading

Brief description of services

Business model

• First trader in the terminal

• Reserved capacities starting from the 1st of January, 2015

• Signed LNG supply contract with Statoil (0,54bcm/annum)

Pricing – price indexed at NBP

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Main drivers for on-shore LNG usage:• lower emissions (COx, NOx, SOx)• lower operating and maintenance

costs• safe storage and transportation.

500 km

Planned LNG terminal/reloading station

Potential demand

Current demand

Liquefaction plant

2015

2016

2016

Local regasification

LNG fuel• Heavy trucks and

public transportation

• Remote users

• Vulnerable users

• L-CNG fueling stations

• Marine fuel

On-shore LNG Reloading Station

To Karlshamn

To Kiel

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Contacts:

paslaugos@sgd.lt

Tel.+370 46 297008+370 46 297003

SC Klaipėdos naftaBurių st. 19, P.D. Box 81   Klaipėda, LT92276

Tel. +370 46 391 772Fax. +370 46 311 399

www.oil.ltwww.sgd.lt

Baltijos ave. 40Klaipėda, LT92276

Gedimino ave. 33/17-2Vilnius, LT01104