Klaipeda will become LNG reloading hub and connect four Baltic Sea region countries into a single LNG value chain

The first meeting of the project “Blue Baltics” partners took place in Klaipeda on the 14th of March. During this meeting synchronisation of the infrastructure of the Baltic Sea region liquefied natural gas (LNG) as well as perspectives and the progress of the Project were considered. The participant of this meeting the Chairman of the European Parliament’s Committee on Transport and Tourism and the European Coordinator for Motorways of the Sea Brian Simpson presented the financing possibilities for transport sector within the MoS Program.

Project partners visited LNG terminal.

LNG reloading station constructed by the appointed Project coordinator KN (SC “Klaipedos nafta”) is becoming the LNG value chain axis. It is expected that Klaipeda will become LNG reloading hub and connect four Baltic Sea region countries into a single LNG value chain.

“After the meeting with partners the progress in projects implemented by each country has become apparent and it has been planned that this LNG infrastructure net will become totally active by the middle of 2019. Investments to „Blue Baltics” project are designated to reach the higher efficiency of transport sector, service integration and development of economical  LNG logistics chain. The goal of KN is to reach that LNG reloading station alongside with the central LNG terminal should operate according to the principle of the  access of the third parties and the optimal number of the clients could use its services,” told the acting director general of SC “Klaipedos nafta” Marius Pulkauninkas.

LNG reloading station project is being implemented with own and borrowed funds and EU support. Operation of LNG reloading station will partially reduce the maintenance costs of Klaipeda LNG terminal in cases when LNG, designated to reloading station, will be imported via the central LNG terminal. The reloading station will be put into operation by the end of the summer of the current year.

Project “Blue Baltics” concentrates investments to construction of LNG infrastructure promoting sustainable transportation by sea and by land system as well as the greenhouse gas reduction. This Project is based on successful experience of the previous projects, like the experience of Klaipeda LNG terminal operated by KN, Nyneshamn (Sweden) small – scale LNG terminal operated by SC AGA incorporating other partners- German “Bernhard Schulte GmbH & Co. KG” that develops LNG transportation by ships project, Estonian “Alexela Energia AS” that is planning to create the net of LNG stations designated to supply the public, freight and sea transport as well as the consumers in the areas that are not located within the reach of gas net and SE Klaipeda State Seaport Authority (KSSA) that has been performing partially works in order make the quay operated by KN to LNG handling.

“I am sure that “Blue Baltics” project will contribute to implementation of EU Environmental Low Sulphur Directive (SECA) and International Convention for the Prevention of Pollution from Ships (MARPOL). The project finances the expansion of LNG bunkering net of the Baltic Sea seaports and I believe that this will become the starting point for the use of LNG fuelled ships in the main Baltic Sea bunkering points. In the context of Lithuania this project has the potential to turn Klaipeda into LNG distribution centre of real value and gates of LNG supply chain in one the most intensive, but ecologically clean navigation zones in the Baltic Sear region,” told Brian Simpson, the Chairman of the European Parliament’s Committee on Transport and Tourism and the European Coordinator for Motorways of the Sea.

“We are proud of the companies operating in the Seaport.  Due to them the competitiveness of the Seaport has been constantly increasing. We congratulate the project of SC “Klaipedos nafta” – LND reloading  station and contribute to implementation of it. This project will create the conditions both to benefit from the possibilities of LNG terminal more efficiently and to increase to the great extent the attractiveness of Klaipeda Seaport and to create more favourable conditions for the expansion of LNG navigation”, said Arturas Drungilas, the Marketing and Corporate Affairs Director of Klaipeda State Seaport Authority.

Approximately 3,1 million euros have been allotted to KN reloading station from the “Blue Baltics” financing program. Totally investments to 5 projects reach 47,6 million Euros, 15 million euros have been allowed from MoS program.