Page 13 - Euroil Week 13 2020

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NEWS IN BRIEF
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Bulgaria regulator cuts gas,
heating prices; electricity
prices unchanged
Bulgaria’s Energy and Water Regulatory Commission (EWRC) said that electricity prices will remain unchanged, while the natural gas price will be cut by 42.8%, triggering a reduction in central heating prices starting April 1.
The lower gas price was a result of
the amended terms of the contract with Russia’s Gazprom, agreed in March. This has resulted in an average decrease of heating prices of 21.8%.
Consumers in Sofia will see the largest decrease in their heating bills, by 26.5%, although that change will only affect the tail end of the current winter heating season. Prices in Plovdiv will go down by 12.1% and in Bourgas by 17.3%, while Varna would see the lowest price cut, of 8.3 per cent.
The regulator said that it assessed the impact of the lower gas prices on electricity generation costs, concluding that the savings would offset by the purchase
of additional electricity from the state- owned Maritsa Iztok 2 coal power plant in February-June. As a result, EWRC said it decided not make any change to the current electricity rates.
Gunvor restarts German
oil refinery Ingolstadt after
maintenance
Energy trader Gunvor Group said on Monday its oil refinery in Ingolstadt, Germany, was in the process of restarting its first units after finishing maintenance. The 110,000 barrel-per-day refinery was fully shut down for maintenance for several weeks in March.
Hoegh LNG applies for Croatian LNG licence
Hoegh LNG Holdings advices that its subsidiary, Höegh LNG, has applied for an LNG infrastructure ownership, operations and development license in Cyprus.
To diversify Cyprus’ energy mix
to reach new emission targets for the country’s power production, Cyprus needs to replace the consumption of refined oil products with cleaner LNG as fuel. The plan consists of using one of Hoegh LNG’s FSRUs as a fast track solution for the required fuel switching, thereby reducing air emissions, cutting EU emission taxes,
enabling savings on fuel costs and reducing electricity price per KWh for local consumers.
The FSRU can stay on location as a bridging solution or for an extended period serving different customers on Cyprus as well as bulk breaking and delivering LNG to other customers in the Mediterranean.
For this planned project, Höegh LNG
is working together with VTT Vasiliko Ltd. and H4E GasFuel. VTTV owns an existing jetty in the Vasilikos Port, at close proximity to the country’s power plants, that can be adapted for the FSRU terminal. Subject to the licence being granted, Hoegh LNG expects to be able to start LNG import operations during H1 2021.
Sveinung Stohle, CEO of Hoegh LNG states: “This planned project is part of Hoegh LNG’s strategy to secure new FSRU contracts for our assets. Even at this early stage I am very pleased with the progress we have made with our local partners VTTV and H4E Gas Fuel to offer a fast track LNG import solution for the Cypriot energy market.”
HOEGH LNG
PGNiG starts using Klaipeda small-scale LNG facility
Polish oil and gas company PGNiG started commercial operations at the KN-operated Klaipėda LNG reloading station in Lithuania on April 1.
PGNiG has reserved the plant’s capacity under a five-year contract which it won following a competition tender. By using the plant, PGNiG will be able to expand in the Baltic smallscale LNG market and help supply the fuel to Poland.
Darius Silenskis, CEO of KN, said: “We are positive that cooperation between KN and PGNiG will significantly contribute to strengthening of the regional small-scale LNG market. Together with our partners, we will strive to intensify its development, which will provide opportunities for more competitive prices and will enable LNG
to be widely used by customers in Baltic States, North-Eastern Poland and Central and Eastern Europe.”
There are currently eight LNG refuelling stations in Poland, two of which were opened earlier this year. The operation of such stations ensures access to LNG to heavy road transport. There is also a significant increase in the number of LNG regasification stations in off-grid locations, KN said.
“It is an important step in building PGNiG’s position in foreign markets. I am convinced that PGNiG’s competence in small-scale LNG trading and operations
will enable it to effectively develop the market for this fuel in Lithuania, Latvia and Estonia. We already supply our LNG to customers in Germany and the Czech Republic,” said Jerzy Kwiecinski, CEO of PGNiG.
Lithuania’s Klaipedos Nafta to temporarily relocate FSRU
Lithuania’s Klaipedos Nafta will temporarily relocate its floating storage and regasification unit (FSRU) Independence while Klaipeda’s port waters are being cleaned this week.
From March 30 to April 5, the FSRU
will be moved from the usual location of
the LNG terminal near Kiaulės Nugara Island while operations of the facility will be temporarily suspended.
The cleaning works will be carried out by the Belgian dredging company Jan de Nul, according to a Klaipedos Nafta statement.
About 50,000 cubic meters of soil is expected to be excavated during these works.
The aim is to ensure that the cleaning works are carried out as quickly as possible and that the LNG terminal operations will be resumed according to the intended plan, the statement said.
Head of Klaipėdos Nafta Darius Šilenskis said that the sediment cleaning works in the mooring zone of Independence would be carried out for the third time since the start of operations in 2014.
Klaipėdos Nafta also plans to perform some technical maintenance work as the LNG import facility is offline.
“During the COVID-19 pandemic, for the sake of maximum safety, we will only carry out the work we are capable of doing on our own,” Silenskis said.
This includes inspection of LNG terminal automatics, electrical, and fire protection systems as well as the maintenance of the gasline and mooring equipment.
“For the time being, maintenance work that requires the help of external contractors is scheduled for the fall,” Šilenskis said.
Klaipedos Nafta is currently leasing the FSRU Independence from Norway’s Hoegh LNG under a ten-year deal that expires in 2024.
However, the Lithuanian company has recently signed a deal with the Nordic Investment Bank (NIB) to finance the purchase of a FSRU once this deal expires.
NIB’s loan of €160mn ($182mn) will finance the acquisition of the “most economically viable” FSRU at the end of 2024.
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