KN Presents Its Long Term Corporate Strategy

Source: www.gulfoilandgas.com 6/14/2023, Location: Not categorized

Energy terminal operator KN (AB Klaipedos nafta), now in its 64th year of operation, presents a new long-term corporate strategy for the period 2023–2050. With it, the company is embarking on an energy transformation journey aimed at adapting its operations to meet the needs of the future, to become climate-neutral by 2050.

“The world is moving towards decarbonisation and will have to move away from the still widespread use of fossil fuels for energy and transport to other forms of energy in the coming decades. In the face of this change, we are ready to meet the expectations of business and industry by providing them with essential energy resources and making an important contribution to building a future based on sustainable energy. We aim to be an important part of the energy supply and value chains of the future, successfully creating value in the energy sector, both regarding energy security and financial returns to shareholders,” says Darius Šilenskis, CEO of KN.

The long-term KN corporate strategy has three main lines of action — liquid energy products, liquefied natural gas (LNG) terminals, and work on new forms of energy such as synthetic fuels, hydrogen and its compounds, other alternative energy carriers, carbon capture and storage, etc.

A gradual transition to new energies
By 2030, KN aims to lay a solid foundation for the future business of new energies. The company will do this gradually by diversifying its activities, building new and adapting existing infrastructure.

“To date, no one can say with certainty how and at what speed Europe will switch to new forms of energy, or which ones or combinations of them will dominate. But when that happens, we will not only be ready to provide handling and storage services, but we have the ambition to become the leaders in the Baltic region in storing and transporting new sustainable energies by 2050,” says Šilenskis.

By 2030, KN will aim to develop at least three business opportunities to enter the hydrogen carrier handling and storage market, to create a CO2 storage and handling business to help control and reduce carbon emissions, and to create a pilot battery project in the region and a sustainable business model for the company to become a part of the energy storage/balancing market. Harnessing the potential of new energy sources will gradually help the company move towards a green economy.

Current activities as a foundation for future investments
In the face of future changes, the company will continue to focus on its current activities, which will help it to secure the steady income needed to invest in new forms of energy.

KN is planning a 50% revenue growth by 2030, driven by local, regional, and global market activities.

KN currently operates three liquid energy product terminals in Klaipeda, Subacius, and Marijampole, and is the operator of liquefied natural gas (LNG) terminals in Lithuania and Brazil. In addition, KN has been appointed as the provider of commercial operation services for the floating LNG terminal in Wilhelmshaven, Germany. The company has contributed to more than ten different LNG projects worldwide.

The development of liquid energy terminals is expected to diversify the product and customer portfolio further. There are plans to increase the handling of biofuels and to enter the storage and handling market for chemical products (methanol, etc.). KN will continue to focus on operational excellence, commercial and operational efficiency, and creating more value for customers.

The LNG business will continue focusing on value creation in the region and the global LNG market. By 2030, decisions will be made on expanding the Klaipeda LNG terminal dispensing capacity, depending on market demand. It promises to gradually expand the business development activities of the floating LNG terminals in growth markets and to take decisions on the further operational strategy of the small-scale LNG terminal.

Evolution, not revolution
According to the CEO of KN, the diversification of the business will help expand the market and ensure financial capacity in preparation for integrating new energy sources. He calls this a natural evolution.

“In more than 60 years of operation, we have learned to adapt to any change — the impact of climate change, the effects of the war in Ukraine. We are ready to adapt and operate efficiently no matter how the future of energy changes. We are not looking for quick, drastic solutions, KN is going through an evolution, not a revolution. We are keeping pace with innovation and striving for cleaner energy — we plan to become a climate-neutral company by 2050,” says Mr Šilenskis.

He sees a world where sustainable liquid energy solutions enable industry and society to build a cleaner, safer, and more prosperous future. By continuously innovating and expanding its portfolio of services, KN aims to be at the forefront of this transformation and to achieve the goal of climate neutrality in its operations.





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