Polish energy player to use Lithuania’s LNG reloading capacity until 2030

Lithuanian liquefied natural gas (LNG) terminals’ operator KN Energies has prolonged the contract with Polish energy player ORLEN Group, enabling the latter to use the small-scale reloading station in the Baltic country for five more years.

The deal will grant the Polish player sole access to a small-scale LNG reloading wharf station in Klaipėda, Lithuania, bolstering gas supply to north-eastern Poland and the broader Baltic region. ORLEN has been using the station’s capacity since April 1, 2020, under a previous five-year contract, during which nearly 60,000 tonnes of LNG were received via the terminal.

The new agreement is set to last until the end of March 2030, allowing the loading operations to continue and ensuring natural gas supply to customers not connected to transmission or distribution networks. This route is said to be more efficient than relying solely on shipments from the Świnoujście terminal, Poland’s primary LNG import hub, which recently received its 300th LNG shipment.

Darius Šilenskis, CEO of KN Energies, said: “We believe that this agreement will flourish further cooperation with Orlen and will provide favorable conditions for even greater LNG loading volumes through the reloading station to LNG semitrailers and will create added value for our client and the entire Polish and Baltic region. Although it is a small-scale LNG terminal, it has huge potential and significance for the entire LNG value chain. We appreciate the constructive cooperation with our partners in Poland.”

The Klaipėda reloading station supplies LNG to industrial users, households, and heat producers, as well as fueling stations supplying natural gas to trucks in Poland and the Baltic States. This is said to contribute to Europe’s climate neutrality objectives since LNG is considered a bridge fuel and an alternative for industrial and transport applications using coal or other more polluting fossil fuels.

The reloading station is an onshore small-scale LNG terminal near the Klaipėda port gate, which became operational in 2017. It comprises five LNG storage tanks with a capacity of 1,000 cubic meters each, paired with wharf infrastructure designed to reload cargoes to smaller vessels.

Ireneusz Fąfara, CEO and President of ORLEN’s management board, noted: “The extension of our partnership with KN Energies is a significant milestone in reinforcing our position in the Baltic region’s LNG market. While the Świnoujście terminal remains a crucial hub for our LNG operations, the Klaipėda reloading station plays a vital complementary role, allowing us to optimise the cost of logistics. Beyond serving the Polish market, the LNG sourced there is also supplied to Lithuania, Latvia and Estonia, where we are witnessing growing interest in cooperation with ORLEN.”

Apart from small-scale LNG operations, the ORLEN Group imports large volumes of LNG through a terminal operated by KN Energies in Klaipėda. The terminal features a permanently moored floating storage and regasification unit (FSRU) – Independence – which was scheduled to undergo drydock inspection and maintenance in Denmark earlier this year.

The Polish player has secured long-term regasification capacity until 2032, allowing it to import over 0.5 billion cubic meters of natural gas annually via the terminal. The firm says it received ten cargoes so far, amounting to approximately 656,000 tonnes. 

PGNiG Supply&Trading, part of ORLEN Group, recently inked a gas sales deal with Slovakia’s ZSE Group to secure the supply of LNG originating mainly from the United States (U.S.) in a bid to diversify supplies.  The LNG is set to arrive at the Klaipėda LNG terminal, after which it will be sent to the Polish gas system via the Poland-Lithuania gas pipeline. Afterward, it will be delivered to Slovakia via the Vyrava interconnector.