Poland's Orlen signs Lithuania deal to boost LNG deliveries (updated)

KN Energies AB

04/09/2024 12:35

(Adds detail on transportation, comment from CEO, background)
       GDANSK, Sept 4 (Reuters) - Polish top refiner Orlen
 PKN.WA  signed on Wednesday a five-year agreement with
Lithuanian oil and gas logistics firm KN Energies  KNE1L.VL  for
exclusive use of a waterfront liquid natural gas (LNG)
transshipment station in Klaipeda.
    The agreement focuses on small-scale gas supply as LNG
received at the station will be transported via small ships and
later on with trucks as opposed to oil tankers.
    The gas from Klaipeda will be sent to clients in
northeastern Poland and other Baltic countries such as
Lithuania, Latvia, and Estonia.
    "The extension of agreement with KN Energies is an important
step in strengthening Orlen group's foothold on the LNG market
in Baltic Sea... the transshipment terminal in Klaipeda will
play a complementary role and will allow us to optimise
logistics costs," Orlen CEO Ireneusz Fafara said in the press
statement.
    Orlen sees Lithuania as one of its strategic markets, where
its subsidiary Orlen Lietuva is investing 970 million euros
($1.1 billion) aimed at improving its refining output potential,
the company said in a separate press statement.
    The Polish refiner is also looking at the development of
Lithuanian offshore assets as it considers investing in
production of "green" hydrogen as part of its renewable energy 
growth.
    
($1 = 0.9053 euros)

 (Reporting by Mateusz Rabiega; editing by Jason Neely and
Emelia Sithole-Matarise)
 ((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))