ship.energy

KN seeking external legal input on FSRU project choices

‘The project requires specific competencies, such as ship brokers, ship classification specialists, as well as lawyers specialising in the LNG ship industry – that is why the aim is to use the services of external experts,’ says Darius Šilenskis, Klaipėdos Nafta’s CEO.

In March the Nordic Investment Bank (NIB) and Lithuanian LNG and oil terminal operator KN signed a 25-year loan agreement to finance the purchase of a floating storage regasification unit (FSRU) for LNG operations.

Currently, the FSRU Independence used for LNG imports to Lithuania is leased on a 10-year arrangement. According to a KN statement in March, the NIB loan – which provides up to €160 million – will ‘finance the acquisition of the most economically viable FSRU at the end of 2024, once the current lease and service agreement expires.’

KN has now launched a public market consultation on the planned procurement of legal expert services that are required ‘for the effective implementation of the long-term LNG supply solution’.

Under Lithuania’s Law on Liquefied Natural Gas, KN is obliged to acquire and operate a floating LNG storage and regasification unit (FSRU) by 31 December 2024 at the latest in order become the owner of the whole infrastructure and superstructure.

In order to make project decisions, KN says ‘missing competencies will be used to develop strategies and contracts for the acquisition and management of FSRU maintenance services.

‘Various alternatives will be considered with the help of external experts, including (but not limited to) the acquisition of the existing FSRU Independence.

KN also plans to procure the services of other external experts to prepare for the FSRU acquisition process and technical specifications and public consultation on the selection of these services will be announced in due course.

On 8 March this year, the first LNG bunker delivery was undertaken at the Port of Klaipėda. The cement carrier MV Greenland was bunkered with LNG supplied by Cryo Shipping at the port’s Malkos Bay Terminal from a shore-side LNG reloading station operated by KN.

Lesley Bankes-Hughes

Lesley Bankes-Hughes