ORLEN solidifies LNG supply logistics across Central and Eastern Europe
ORLEN has entered into a five-year exclusive agreement with Lithuania’s KN Energies, previously known as Klaipedos Nafta, granting it sole access to a small-scale LNG reloading wharf station in Klaipėda, which will bolster gas supply to north-eastern Poland and the broader Baltic region. Since the initiation of an earlier contract, ORLEN has received nearly 60 thousand tonnes of liquefied natural gas via the Klaipėda terminal.
Effective until the end of March 2030, the present agreement with KN Energiesensures that LNG received by ORLEN at the Lithuanian reloading station will be transported by road tankers to customers, predominantly in north-eastern Poland. This supply will be crucial for business clients and LNG regasification stations in areas beyond the reach of the existing gas network.This transport route is significantly more efficient than relying solely on shipments from the Świnoujście terminal, which remains Poland's primary LNG import hub.
“The extension of our partnership with KN Energies is a significant milestone in reinforcing our position in the Baltic region’s LNG market. While the Świnoujście terminal remains a crucial hub for our LNG operations, the Klaipėda reloading station plays a vital complementary role, allowing us to optimise the cost of logistics.Beyond serving the Polish market, the LNG sourced there is also supplied to Lithuania, Latvia and Estonia, where we are witnessing growing interest in cooperation with ORLEN,” said Ireneusz Fąfara, CEO and President of the Management Board of ORLEN.
“We believe that this agreement will flourish further cooperation with Orlen and will provide favourable conditions for even greater LNG loading volumes through the reloading station to LNG semitrailers and will create added value for our client and the entire Polish and Baltic region. Although it is a small-scale LNG terminal, it has huge potential and significance for the entire LNG value chain. We appreciate the constructive cooperation with our partners in Poland,” said Darius Šilenskis, CEO of KN Energies.
The Klaipėda reloading terminal, supplied by vessels with a capacity 30 times smaller than conventional ocean-going methane carriers, is equipped with five LNG tanks, offering a total capacity of 5 thousand cubic metres of liquefied gas. It also features wharf infrastructure designed to handle LNG cargoes, reloading them to smaller vessels.
Beyond small-scale LNG operations, the ORLEN Group also imports large volumes of LNG through a floating terminal operated by KN Energies in Klaipėda. It has secured long-term regasification capacity, reserved until 2032,allowing it to import via the terminal over 0.5 billion cubic metres of natural gas annually. To date, ORLEN has received 10 cargoes, totalling approximately 656 thousand tonnes. After regasification, the LNG has been distributed between customers in the Baltic states and the Polish market, flowing through the Gas Interconnection Poland–Lithuania (GIPL) pipeline, operational since May 2022.
About KN Energies
KN Energies is an international energy terminal operator that ensures safe and reliable flows of liquid energy products and liquefied natural gas (LNG) for users in the Baltic Sea region. The company helps clients worldwide develop sustainable energy infrastructure projects with its knowledge and skills. KN Energies currently operates three liquid energy product terminals in Lithuania and operates LNG terminals in Lithuania, Germany, and Brazil. Additionally, it provides commercial operation services for four floating LNG terminals in Germany.