Klaipėdos Nafta, the operator of the Klaipeda LNG terminal in Lithuania, is to consult market participants on the proposed purchase of a floating storage and regasification unit (FSRU), a process which is expected to be instigated in the second half of 2021.
According to a law adopted in 2018, KN must ensure the operation of the LNG terminal at least until 2044. This law also requires KN to acquire and own an FSRU.
Klaipėda LNG terminal has been operating since 2014. The FSRU which is currently positioned at the terminal is leased by KN from the Norwegian company Höegh for a period of 10 years, with a purchase option.
KN plans to start the procurement process for an FSRU in the second half of this year. According to KN, ‘The best bid received during the procurement process will be compared to the current solution according to the established cost-effectiveness criteria’.
Financing for the purchase of the FSRU has already been secured and approved by the European Commission.
During the upcoming market consultation period, companies are invited to submit draft procurement documents by 3 May.
Last November, KN announced that it had selected Holman Fenwick Willan LLP (HFW), Quality Energy Developments Consulting (QED) and DNV GL to provide legal, commercial and technical advice for the FSRU, which the company plans to have in operation by the end of 2024.