Shell To Commission Lithuania Unit
Shell is to help commission a small-scale reloading station at Lithuania’s LNG terminal next summer, according to its operator Klaipedos Nafta (KN).
KN said August 1 that it estimates construction of its new reloading station will be completed in January 2018 when of all the five LNG tanks, each of 1,000 m3, will be put into operation. It said that Shell Western had won contract to deliver LNG aboard a small-scale carrier to the terminal, and then unload and reload the LNG into each of the five new tanks at the new station.
It will deliver 1,000 m3 of LNG during the period from August 15 to September 30 2018 as required by the tender conditions which, KN says, will mark the first time that a small-scale LNG carrier will have delivered to Lithuania. Shell beat two rival LNG suppliers in the tender.
Lithuania embraces Scandinavian model
Small-scale LNG distribution by trucks and small vessels is common across Scandinavia, which has over 30 small-scale LNG depots, where it has helped expand the market for LNG as a ship's bunker fuel, thereby improving air quality in ports.
Shell acquired Norwegian small-scale LNG distribution company Gasnor in 2012 for some $75mn and expanded it into a northwest Europe actor. But it has several active rivals in the sector such as Skangas, Nauticor (formerly Bomin Linde), Engie and Titan LNG.
Like the main Klaipedos LNG import terminal that opened late 2014, the new reloading station will be open to all LNG suppliers and off-takers. KN said, starting autumn 2017, suppliers will be able to reserve reloading capacities in Klaipeda with a view to supplying customers in the Baltic Republics. Road trucks carrying LNG though have already supplied the region from the Swinoujscie terminal in Poland and even from Gate LNG in the Netherlands. Separately, in January 2017, Statoil helped KN conduct Lithuania's first ever small-scale export of LNG.
Cardissa, a newly-built LNG bunkering vessel on long-term charter to Shell, reached northwest Europe late last month after its delivery from the STX shipyard in South Korea. With capacity to hold 6,500 m3 LNG, it is the type of vessel that may be used by Shell for the Klaipeda commissioning contract.
Shell subsidiary Gasnor also has the 7,550 m3 capacity small-scale LNG carrier Coral Methane on long-term charter from Dutch owner Anthony Veder.
Mark Smedley