International energy terminal operator KN (KN Energies AB starting 10th January 2024) is kicking off the year 2024 by securing the public tender for the commercial management of four German liquefied natural gas (LNG) terminals on the North Sea coast. The company has signed contract with Deutsche Energy Terminal GmbH (DET), the German state-owned company that operates state-controlled LNG terminals.

On behalf of the German Federal Ministry for Economics Affairs and Climate Action, the DET operates Germany's first LNG terminals on the North Sea coast, the Wilhelmshaven 1 LNG Terminal and the Brunsbüttel LNG Terminal. Additionally, DET will operate two upcoming terminals: the second LNG terminal in Wilhelmshaven and the LNG terminal in Stade on the Lower Elbe River.

The two-year contract between KN and DET covers the commercial management of all four LNG terminals. Until now, KN already provided these services for the 1 Wilhelmshaven and Brunsbüttel LNG terminals, but after DET took over the management of these facilities, a new tender was launched for the consolidated commercial management of four LNG terminals.

In recent years Germany is rapidly embarking on the development of the construction of floating LNG terminals in order to provide new sources of supply for LNG following the failure of gas supplies via pipelines from Russia. The German Government is using the state-owned liquefied natural gas terminals to secure reliable energy supplies to the federal market. Germany is expected to have a total of five FSRU-based LNG import terminals within this year, four of which will be operated by DET.

According to the contract signed by KN and DET, commercial management services for the four LNG terminals will include managing commercial and logistics operations, gas dispatching processes, accounting and reporting of the commercial activities to the DET, development and provision of IT systems and tools and other terminal operational services adapted to the customer’s needs.

The contract also includes a commitment to capacity building and knowledge transfer of KN expertise to DET staff. During the term of the contract, the objective is to train the local team to be able to ensure the commercial operation of the terminals themselves.

Darius Šilenskis, CEO of KN, is confident that the success in securing the tender can be attributed to the experience already gained by KN in the German market.

“By providing commercial management services to two German LNG terminals, we have had the opportunity to demonstrate unique competences, expertise, professionalism, and the ability to meet customers' expectations in a qualitative and prompt manner," Mr. Šilenskis stated.

KN CEO emphasizes that assuming a more significant role in the German LNG terminal projects will enhance KN's position in the European LNG terminal market. The company consistently adheres to its strategic direction of being the first choice for customers involved in the development of LNG terminals worldwide.

Dr. Peter Röttgen, Managing Director of DET is satisfied with the result of the tender: “After our initial positive experience of working together with KN at our sites in Brunsbüttel and Wilhelmshaven, we are now looking forward to continuing this fruitful and professional collaboration for all DET sites.”

KN is an international energy terminal operator responsible for ensuring safe and reliable flows of liquid energy, loading of chemicals and raw materials for Baltic consumers, while also using the company’s knowledge and skills to assist clients around the world in developing sustainable energy infrastructure projects. The company currently operates three terminals for liquid energy products in Klaipėda, Subačius, and Marijampolė, and is also the operator of liquefied natural gas (LNG) terminals in Lithuania and Brazil. To date, the company has contributed to more than 10 different LNG projects around the world.

About KN

KN is among the very few companies worldwide with experience of successfully commissioning floating LNG import terminals on two continents (Europe and South America), also achieving several worlds “firsts” and commercial innovation in the industry, including multi-user mode, virtual LNG swaps, continuous small-scale reloads and FSRU integration with onshore truck loading infrastructure.

Besides being operator of LNG terminal in Port of Açu, KN is owner and operator of Klaipėda LNG terminal based on FSRU “Independence” since 2014 as well as the onshore LNG reloading station, which is part of the LNG value chain in the Baltic region. Furthermore, KN also partnered up with companies developing LNG projects in South America in 2015-2016, when the company supported the construction and commissioning of the LNG terminal in the Port of Cartagena, Colombia.