Klaipėdos nafta AB and Latvenergo AS sign a long-term agreement on the use of Klaipėda LNG terminal
September 30, 2022
Latvenergo AS, having participated in the long-term capacity allocation procedure for the Klaipėdos nafta LNG terminal organised by Klaipėdos nafta AB, has obtained the right to use the Klaipėdos nafta LNG terminal's 6 TWh annual capacity for regular supplies of natural gas for the next 10 years.
In Europe, LNG terminals are the most suitable alternative to ensure reliable supplies of natural gas, replacing the natural gas purchased from Russia. As of 1 January 2023, Latvia will completely stop buying natural gas from Russia. This has significantly increased the importance of the Klaipėdos nafta LNG terminal, which is currently the only guarantee of gas supply in the Baltic region.
In the procedure for long-term capacity allocation of the Klaipėdos nafta LNG terminal, four packages were auctioned, each with an annual capacity of 6 TWh. The auction resulted in a total of 24 TWh of regasification capacity being awarded in the Baltic market, with Latvenergo gaining 1/4 of the long-term capacity. The agreement between Klaipėdos nafta and Latvenergo provides for the regasification of a regular supply of 6 standardised LNG carriers, which Latvenergo will purchase on the open international market from the world's leading LNG companies and which will be transported annually from the terminal to Latvia – for the generation needs of the CHPP, for customers and for safety reserves.