Klaipėda LNG Terminal: Gateway to the Baltic Sea Gas Market

Klaipėda LNG Terminal: Gateway to the Baltic Sea Gas Market
Renata Navikaitė
Head of Regulatory Services Division
February 18, 2016, Klaipėda
Photo A. Kubaitis
1
Overview of Klaipėdos nafta and Klaipėda LNG terminal
KN as a diversified oil product and LNG terminal operator
40+ years of oil product terminal
operations
LNG reloading and bunkering
station project
Successful fast track LNG
terminal project implementation
LNG bunkering vessel project
State fuel reserves
LNG terminal consulting projects
2
Overview of the Klaipėda LNG terminal
Successful operations after commissioning in autumn
Commercial operations
First commercial send-out from 1st
of January 2015
Commissioning cargo
Delivered 28th of October
2014
First commercial cargo
Delivered 23rd of December
2014
FSRU Independence
Arrived on the 27th of October
2014
3
4
Regasification unit
Deck of FSRU Independence
5
High pressure gas platform
Service platform
Naujausios nuotraukos iš statybų aikštelės
Construction of the jetty
6
Gas transmission
system
Gas metering station
Naujausios nuotraukos
iš statybų aikštelės
and control center
7
Overview of Klaipėdos nafta and Klaipėda LNG terminal
Key achievements
Lithuania fulfills
N-1 standard
Business
model
European
Commission
approved by
EU
support
LNG terminal
launched
Positive
evaluation
Financing by
EIB, NIB
on time
Professional
of 12 audits
Security of
energy supply
project team
Managed
international
Savings of
Prompt
30 mln.
EUR
public
tenders
implementation
Minimal
impact
on the
environment
Positive
public opinion
8
Commercial Operations of the Klaipėda LNG Terminal
Services of the Terminal
Services
Start from the 1st of January, 2015.
New opportunities in 2016-2017
LNG reloading station
LNG regasification
LNG reloading
LNG regasification tariff – 0,10
EUR/MWh
LNG reloading tariff – 1,14
EUR/MWh
•
Capacities allocated before and during the Gas Year (October – October)
•
Minimal send out ensures constant operational availability
•
All services are on a transparent third party access basis
LNG bunkering and truck
reloading
•
LNG cargo break-bulking
possibilities
9
Commercial Operations of the Klaipėda LNG Terminal
Terminal Business Model
Terminal capacities are available via open booking procedure
(nm3/day)
Terminal User
New gas year
Unused
capacity
Terminal User
10.000.000
8.000.000
6.000.000
Terminal User
Third Party Access
infrastructure
Unused
capacity
4.000.000
Terminal User
2.000.000
-
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
•
Currently 3 Terminal users
•
Reserved capacities for Gas Year 2016 – 1.1 bln. nm3
Capacity available for traders
•
Terminal utilisation rate – 29%
Average daily send-out
10
Access to new Baltic Sea markets
LNG regasification/ pipe markets
LNG ship reloading markets
LNG trucking markets
Baltic-connector
GIPL
Markets accessible starting the 1st of January, 2015
Markets accessible after regional interconnections are finished
Small & Mid-scale LNG terminals
(5.000-50.000m3; operational and under development)
Markets accessible after on-shore LNG reloading station is finished
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Access to natural gas markets in the Baltic sea region
3.7
BCM/yr
•
FINLAND
Klaipeda LNGT provides access to well interconnected natural gas
market of the Baltic States, including the Incukalns underground gas
storage facility
Baltic-connector
to Finland
•
pipeline
0.6
BCM/yr
ESTONIA
1.3
BCM/yr
Klaipeda LNG
terminal
Finish market is accessible after the completion of Baltic Connector
Incukalns gas
LATVIA storage
•
Polish market is accessible after the completion of GIPL pipeline
•
Access to Ukrainian market is available once the transit is agreed
2.3
BCM/yr
LITHUANIA
GIPL
BELARUS
Third Party Access infrastructure
POLAND
GIPL (Gas interconnection Poland Lithuania) and BalticConnector pipeline
15
BCM/yr
42.5
BCM/yr
Possible gas flows from Klaipeda LNG terminal
Natural Gas Consumption
UKRAINE
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Reload hub for the Baltic Sea region
Gävle project
Expected start-up: 2018
Nynäshamn project
Operational from: 2011
Manga project
Expected start-up: 20172018
Rauma project
Expected start-up: 20172018
Pori project
Expected start-up: 2016
Gothenburg project
Expected start-up: 2017
Regional hub in Klaipėda
Haminan project
Expected start-up: 20172018
Tallinn-Muuga project
Expected start-up: 2017
Tallinn-Muuga project
Expected start-up: 2017
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LNG reloading station in the port of Klaipėda
LNG Supply Route
LNG unloading
FSRU
LNG supply route
LNG Reloading station
KN oil terminal
LNG Reloading station
Integrated service
Flexible hose
C-type containers
LNG dispenser
LNG trailer
FSRU Independence
LNG
LNG
LNG reloading service
LNG transportation
LNG
LNG
LNG reloading into LNG trailers
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Thank you for your attention.
15
Klaipeda LNGT in the Regional Gas Market
Security of Gas Supply- Price
Comparison of EU wholesale gas prices (2014 Q4) vs July 2015
Historical gas prices, 2013-2015
Eur/ MWh
50
Prices EUR, MWh (2014)
45
No data
40
< 21.00
21.00 – 25.00
35
25.01 – 29.00
> 29.00
25
30
Japan
EU avg import price
RU-DE boarder
Lithuania
20
15
FI
(28.67)
10
HH (USA)
5
0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
EE
(33.29) 21.81
LV
(30.31) 21.21
LT
(36.73) 18.25
PL
(26.20)
2013
World trend – gas prices are going down due to:
• Oil price crisis;
• Mild winters in the recent years;
• New sources of LNG – shale gas;
• Decreased demand in Asia as a result of
energy balance diversification.
•
Regardless, dependency on a single gas supplier
translated to the highest price in the EU until the
end of 2014.
Price level
GR
(29.80)
1.
Lithuania
2.
Estonia
3.
Latvia
4.
Greece
5.
Slovenia
2015
•
TOP 5 end 2014
SL
(29.25)
2014
Source: DG Energy, GetBaltic, Latvijas Gaze, Elering
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2. Global Natural Gas Prices
A Cap for Natural Gas Prices in the Region
Average annual natural gas import price
EUR/ MWh
38
36
34
32
Klaipėda LNG
Terminal is in
Operation
30
28
LNG price sets
natural gas price cap
26
24
22
20
2012
2013
EU average
RU-DE boarder
2014
Regional average
(LT, LV, EE, FI)
2015 H1
Lithuania
NBP+3.5
Sources: NCC,GetBaltic, Latvijas Gaze, Elering, Energiavirasto, The ICE, Indexmundi, ycharts, x-rates.com
Monthly prices are averaged to get the annual average price; Respective month exchange rates are used for currency conversions where needed; Reference for the last 3 months of 2015 H1 price in Lithuania is the GetBaltic fulfilled transaction
weighted average price for transactions carried out within a month; 3.5 EUR/MWh are added to the NBP price to represent LNG shipping, supplier margin and any other additional costs; 10.4 MWh/1000 nm3 natural gas for conversions where
needed.
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