KN, the operator of oil and liquefied natural gas (LNG) terminals, after the announced international public procurement tenders selected the winners of commercial, legal and technical services, who will advise the company on the selection of the most economically and technologically advantageous FSRU and its operating model.
Winners of international tenders: Holman Fenwick Willan LLP - HFW (legal experts), Quality Energy Developments Consulting Limited – QED (commercial experts), and DNV GL AS (technical experts).
KN has previously announced that for the implementation of the LNG long-term import solution project in Lithuania, the law provides for clear time frames and we must select and operate the FSRU by the end of 2024. Therefore, external competencies are used to ensure that the project will be implemented in a timely manner and at the lowest possible cost, in accordance with the principles of transparency, equality and the promotion of competition.
"In commemorating the sixth anniversary of the LNG terminal, we are taking another step in the implementation of the LNG terminal business continuity – we are using external competencies to ensure the long-term supply of LNG. The LNG terminal has become a strong natural gas connection in the Baltic region and a bridge enabling access to the global LNG market. During January-October of this year, as much as 68 percent of the natural gas was delivered from the LNG terminal to the national gas grid. The LNG terminal, the natural gas transmission system, the Balticconector connection and in the future – GIPL – all together strengthen the energy resilience of the region to natural gas supply disruptions and ensure the competitiveness of gas prices used in the region. Therefore, long-term operation of the LNG terminal until 2044 must be implemented effectively, which we hope with the help of experienced experts,” comments Darius Šilenskis, General Director of KN.
External experts will consult KN according to the hourly rate stipulated in the contracts, i.e. KN will use the services only when necessary. The assistance of legal and commercial experts is expected to be available by 2024 and technical – until 2025, as their external competencies may be required depending on the chosen FSRU operating model. The value of the legal services contract is up to 1.045 million Eur, commercial services contract value – up to 120 thousand Eur and the value of the technical services contract – up to 230 thousand Eur. The planned services of advisory experts will amount to less than 1%. purchase prices of FSRU.
In order to maximize the transparency and clarity of the public procurement process for the market participants, KN announced the public market consultations in June this year. Prior market consultations are particularly important for complex procurements that require a high degree of preparation.
About selected experts:
- HFW specializes in international trade (as well as the oil, gas and LNG industries in particular) and has offices in the Americas, Europe, the Middle East, Asia and Australia. Activities include commercial solutions based on legal expertise in construction, aviation, shipping, energy, and more. areas.
- Quality Energy Developments Consulting Limited (QED) is a London-based gas and LNG industry consulting company that advises from project design, implementation to transaction management, with experience in LNG and gas industry projects in America, Africa, Europe, Australia, India, China. DNV GL AS is the world's leading classification company and a recognized technical advisor to the marine, oil and gas industry with experience in risk management, safety and quality assurance.
About long-term LNG import solution project:
The law on the LNG terminal stipulates that the LNG terminal will operate until at least 31 December 2044, while the Government and the state institutions shall ensure that the LNG terminal operator (KN – AB "Klaipedos nafta") by 31 December 2024 at the latest acquires the FSRU and becomes its operator upon the ownership right and by choosing the most economically advantageous tender. KN may choose the existing FSRU “Independence” or any other FSRU in order to achieve energy security objectives and to promote competition between natural gas suppliers. Following the conclusions of the experts, KN ??plans to start the process of selecting FSRU.