KN takes over commercial management of four German LNG terminals
KN takes over commercial management of four German LNG terminals - Offshore Energy
KN takes over commercial management of four German LNG terminals
Lithuanian energy terminal operator Klaipedos Nafta (KN) has secured the public tender for the commercial management of four German liquefied natural gas (LNG) terminals on the North Sea coast.
Specifically, the company has signed a contract with German state-owned Deutsche Energy Terminal (DET), which, on behalf of the German Federal Ministry for Economics Affairs and Climate Action, operates Germany’s first LNG terminals on the North Sea coast, the Wilhelmshaven 1 and the Brunsbüttel terminal, and will operate the two upcoming ones, Wilhelmshaven 2 and the terminal in Stade on the Lower Elbe River.
KN said the two-year contract with DET covers the commercial management of all four terminals. Until now, KN provided these services for the Wilhelmshaven 1 and Brunsbüttel LNG terminals.
Commercial management services for the terminals will include managing commercial and logistics operations, gas dispatching processes, accounting and reporting of the commercial activities to the DET, development and provision of IT systems and tools and other terminal operational services adapted to the customer’s needs, KN revealed.
The contract also includes a commitment to capacity building and knowledge transfer of KN expertise to DET staff, KN noted, adding that during the term of the contract, the objective is to train the local team to be able to ensure the commercial operation of the terminals themselves.
Commenting on the contract, Darius Šilenskis, CEO of KN, emphasized that assuming a more significant role in the German LNG terminal projects will enhance KN’s position in the European LNG terminal market.
Peter Röttgen, Managing Director of DET, stated: “After our initial positive experience of working together with KN at our sites in Brunsbüttel and Wilhelmshaven, we are now looking forward to continuing this fruitful and professional collaboration for all DET sites.”
To remind, in December 2023, it was announced that German energy operator RWE would hand over the LNG infrastructure built in Brunsbüttel to DET.
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.