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Lithuania's Klaipedos Nafta (KN), operator of the floating LNG terminal in Klaipeda and responsible for the development of the port's onshore LNG reloading station, has announced that it has concluded a supply contract with winning tenderer Shell Western LNG B.V. (Shell).

According to the conditions of the tender, Shell is to deliver 1,000 cubic metres (cbm) of LNG from a small-scale LNG carrier into new tanks at the reloading station between August 15 and September 30.

It is set to be the first time that an LNG shipment is delivered to Klaipeda via a small-scale LNG carrier. Also, it will be the first LNG reload operation from a small-scale LNG vessel into the newly constructed onshore reloading station.

The exact date of delivery is to be agreed at a later date and will depend on the schedule of the LNG carrier.

The delivery will begin the commissioning works at the LNG reloading station. It is estimated that the works will be completed in January 2018 when all five 1,000-cbm-capacity LNG tanks will be put into operation.

The purpose of the LNG reloading station is to create a small-scale LNG infrastructure and to develop the LNG market in the Baltic Sea region. Once the LNG station begins operating, Klaipeda is set to become an LNG distribution hub for the Baltic. The station will operate on the Klaipedos Nafta site situated along the second quay.

"Interest in the Baltic LNG market from one of the global energy market leaders means a new stage in the history of KN. Upon signing the LNG supply contract with Shell, one of the world's largest gas trading companies, the LNG shipment will be delivered with a small-scale transportation vessel to Klaipeda seaport for the first time. Both the entry of a new international supplier and the opportunity for gas importers to purchase LNG at competitive prices are important for the developing LNG market in the Baltic States. A wider choice of supply for even a small purchase of LNG means an attractive price," remarked Mindaugas Jusius, KN's CEO.

"In the Netherlands, the usage of LNG is encouraged both in industry and in shipping or ground logistics. We see that Lithuania, thanks to the LNG terminal and the LNG reloading station in Klaipeda, is taking significant and rapid steps towards bringing these sectors closer to cleaner fuel use in the Baltic Sea region. Therefore, we are glad that the Dutch company Shell Western LNG B.V. will bring the first cargo for the commissioning of [the] Klaipeda LNG reloading station. This is an important step in expanding the use of clean fuels - the use of LNG in northern Europe," observed Bert van der Lingen, Ambassador of the Netherlands to Lithuania.

Starting from this autumn, LNG suppliers will be able to reserve reloading capacities in Klaipeda and deliver LNG cargoes to customers in the Baltic Sea, KN said.