Rescue plans for the LNG terminal



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The maintenance charge for the Liquefied Natural Gas Terminal in Klaipėda for Lithuanian gas customers can only be reduced if the domestic work is carried out by the Government of the country, state institutions, public enterprises and infrastructure partners gas in the Baltic States. The financial burden of maintaining the terminal will liberalize the Lithuanian gas market for the Baltic countries. This could increase the demand for LNG imports from Klaipėda in the Baltic region. As more gas could be imported into the region through the Lithuanian terminal, which now operates one-third of its capacity, its "inefficiency" would represent less Lithuanian industry. Unfortunately, the circles of the optimistic scenario are too "if".

"The Lithuanian market is rather small, but we have infrastructures that require high maintenance costs. At present, they are covered by all residents of Lithuania, "said Inga Žilienė, president of the National Commission for Price and Energy Control . Baltic-Finnish gas would create competition and equalize prices while ensuring equal conditions for supplier trade.

"The arrival of new entrants would be particularly beneficial for regional activity: it would stimulate the and in the case of Lithuania, first of all, the natural gas transmission network and the LNG terminal, this would reduce the cost of maintenance of the existing infrastructure. infrastructure for all consumers, "said the chairman of the Awards Commission.

Žilienė predicts that the future of the Polish-Lithuanian gas interconnection will increase the number of sources of natural gas supply and will increase the possibilities of using the LNG terminal not only in Lithuania but also in other Baltic states as well as in Poland, Ukraine and other countries. for requirements. "This will create conditions for additional revenue that would reduce maintenance costs for the LNG terminal and natural gas transmission infrastructure for customers currently in Lithuania," said the chairman of the Commission des Prix. In 2017, the administrator of LNG terminal funds raised nearly $ 84.4 million. euro It is expected that in 2018, about 85.6 million. euro for security component. The tariff commission predicts that the size of the security component of the LNG terminal will not change significantly in 2019.

The LNG terminal allows Lithuania to supply gas, electricity and heat, but strategic badet maintenance is limited. The biggest consumer of liquefied natural gas is paid by the country's largest gas consumer – Jonava Nitrogen Fertilizer and Chemical Products Achema Factory

Achema will pay about 101 million litas from 2013 to 2018. Euro, and d. here 2024 – 239 million. LNG terminal fees. In 2018 alone, such a tax would amount to more than 20 million euros. Achema has also paid the same fees for the LNG terminal in 2017.

The Baltic Common Market will be saved

– What means to reduce the maintenance of the LNG terminal to consumers and to Lithuanian industry?

– Currently, the price commission, together with regulators from Latvia, Estonia and Finland, is actively cooperating in the development of the Baltic and Finnish natural gas markets. By joining the natural gas markets in the region, this would boost overall market liquidity and competitiveness, would allow the region to have similar natural gas prices, provide suppliers with a level playing field for natural gas , would lower the barriers to entry

gas supply prices in the region, which is why the industry and residents are gaining strength. The activity of the region will be at the expense of new entrants: it will drive the market and allow a more efficient use of the existing infrastructure. In the case of Lithuania, first of all, the natural gas transmission network and the LNG terminal, this would reduce the cost of maintaining infrastructure for all consumers, which is very important for Lithuania.

the future. A study by the international company Pöyry Management Consulting showed that the Klaipėda LNG terminal offers benefits to all of the Baltic and Finnish regions. Experts have badessed whether it would be appropriate for Lithuania to continue having a LNG terminal after 2024, by which time the LNG store's independent lease will expire. Three alternatives were considered: the acquisition of the LNG terminal after 2024, the extension of the lease to 10 years and 20 years.

The results of the study confirm that the LNG terminal will bring economic benefits to users in the region and the region after 2024 and will ensure competition in the gas market. According to preliminary calculations, the annual maintenance costs of the LNG terminal could decrease by about 40%, according to the implementation plan of the government program, when it decided to buy back the vessel in 2024 , with a long-term financial commitment. The final decision on the LNG terminal must be taken by the government

The reduction of the cost of maintenance of the LNG terminal in anticipation of an even greater effect may require other work: the Commission and the efforts needed at the government level, active operators of natural gas and LNG – What would it change now and in the future, after the gas connections between Poland and Lithuania, Estonia and Finland? , so that terminal costs are distributed more evenly across the region?

The creation of a common Baltic and Finnish gas region. One of the priorities of the development of the common market is to solve the distribution costs of LNG and underground storage of natural gas in Latvia in Lithuania – a problem is being solved at the level of regional ministers

. for each country in the region. The conclusions of the Pöyry Management Consulting study on the benefits of the LNG terminal for the whole of the Baltic and Finnish regions constitute an essential argument in the cost sharing of the LNG terminal

Inga Žilienė Photo of the 39; archive "Lietuvos žinių"

natural gas transport pricing systems. The goal is to stay out of the tariff points connecting the natural gas transmission networks of the region. The more flexible the natural gas pricing system, the more we will be able to utilize energy infrastructure, reduce the financial burden for natural gas companies and increase the attractiveness of the regional market. .

The issue of tariff concession for the Klaipėda point is the same as for the Incukalns deposit in Latvia

It is expected that in the future the connection to the GIPL will begin, the number of natural gas will increase and there will be more opportunities to use the LNG terminal not only in Lithuania, but also for the needs of the other Baltic states, as well as Poland, Ukraine and Ukraine. Other countries. Thus, as I have already mentioned, before the start of the GIPL, a number of issues related to natural gas were raised by Lithuanian users. transmission network pricing, capacity allocation, the creation of a regional commercial area, the distribution of socialization costs of the SGD terminal and the incukalns depot, the creation of new coupled capacity products, allowing users to order the Klaipeda One Stop Shop in the underground storage of natural gas in Latvia.

Why the price went down in the gas

– Politicians and businessmen, heads of state and private companies disagree on what caused the most gas a drop in prices in Lithuania: the LNG terminal or trends in the global gas market? What is my price commission in this area? Does the terminal exert a general pressure on prices?

– The European Commission carried out a risk badessment of the gas system of Estonia, Finland, Latvia and Lithuania in 2016. Its findings showed that Russia would prevent Gas supply constitute a major threat to natural gas shortages, even at the LNG terminal and at the Incukalns depot. However, even with these conclusions, the LNG terminal reduces the risk of natural gas outages in the region and is a reliable source of gas for consumers not only in Lithuania but also in the Baltic countries.

In addition, the Regulation of the European Parliament and the Council Insurance measures also oblige EU Member States to guarantee the quality of natural gas infrastructure, which requires the establishment of Infrastructure that, in the event of a disruption in the supply of natural gas, guarantees their supply from another source. In particular, the LNG terminal has enabled Lithuania to implement this requirement.

After operating the LNG terminal, the price of gas in Lithuania is the average of the EU. The apparent decline in natural gas price differentials between weighted average prices of natural gas imported into Lithuania and natural gas prices on gas and FTT trade

According to the data available to the Commission in 2013, the difference between weighted average import from Lithuania The TTF exchange prices were 7.9 euros per megawatt (MWh), in 2014 – 8.3 euros per MWh, and in 2015, when the LNG terminal appeared, it is fell to 2.65 euros per MWh, in 2016 it was 3.43. Euro per MWh, in 2017 – 1,69 EUR per megawatt hour. According to the data of the first quarter of 2018, this difference amounts to 1.37 euros per megawatt hour

In February 2018, the European Commission published a Quo vadis study which shows that, despite the merger of the gas markets of Lithuania, Latvia, Estonia and Finland, would not directly affect the wholesale price of gas for the whole of the European Union but, in the case of other sources of natural gas supply , compete with each other for the LNG terminal and the Russian suppliers of natural gas, which would benefit consumers. It is also badumed that the price of natural gas could decrease by approximately 5.2 euros per megawatt hour in the period from the growth of natural gas produced by the LNG terminals from 449 TWh in 2016 to 900 TWh.

Small Market – Large Infrastructure

– How Does the Size of the LNG Terminal's Safety Element for the Maintenance of the LNG Terminal Change and to what Extent could it actually decrease?

– In 2017, the administrator of the LNG terminal funds raised nearly 84.4 million dollars. euro It is expected that in 2018, about 85.6 million. euro for security component. Assessing the current situation and the available data, it is likely that the safety component of the LNG terminal will not change significantly in 2019.

According to the provisions of the law on LNG terminals in force, the supply can not be made in Lithuania that in 2024. This means that after 2024, without a designated supplier, the safety component of the LNG terminal could decrease from 20 to 30 million. EUR per year. In addition, as I have already mentioned, security security could change as the government decides on the future of the LNG terminal

– Should be "homework", according to the National regulator, public authorities and businesses in Lithuania Terminal would be more economically healthy and would not cause headaches for industry or politicians?

– Starting with the fact that the Lithuanian market is rather small, we have energy infrastructures that require high maintenance costs. At present, they are covered by all residents of Lithuania. With the regional market – Lithuania, Latvia, Estonia, and after joining Finland after 2020, we could increase the liquidity of the natural gas market and more efficiently exploit the energy objects, including of course the LNG terminal, the potential of future gas connections. users of the country. And of course, we must not forget that the price of natural gas is particularly sensitive to global trends in oil prices and its products and to fluctuations in exchange rates, and that there can be no fuse ". But new technologies are also coming to the market, which will allow the company's internal processes to be more efficient, reducing operating costs, and therefore also the prices of natural gas for customers. end users.

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