KN calls in the experts

Thursday, 25 June 2020
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Lithuanian LNG terminal operator, AB Klaipėdos nafta (KN), is to use external expertise to facilitate its long-term LNG supply project.

By taking this step, KN said that it would continue to implement its LNG long-term supply solution. The company has also announced a public consultation on the planned procurement of the legal expertise services.

Under a Lithuanian law, KN must acquire and operate an FSRU by 31st December, 2024 at the latest. It must also choose the most economical offer and ensure the LNG terminal’s reliable operations by 2044.

In order to achieve these goals, consultants will be used to develop strategies and contracts for the acquisition and management of FSRU maintenance services. Various alternatives will also be considered, including (but not limited to) the acquisition of the existing FSRU ‘Independence’.

According to Darius Šilenskis, KN’s General Manager, the law provides a clear time frame for the LNG project’s implementation. External expertise will be used to implement the project in a timely manner and at the lowest possible cost, in accordance with the principles of transparency, equality and the promotion of competition, he said.

“The project requires specific competencies, such as shipbrokers, ship classification specialists, as well as lawyers specialising in the LNG ship industry. That is why the aim is to use the services of external experts,” Šilenskis explained.

"Market consultation allows contracting authorities, such as KN, to better understand the structure of the market and the possibilities of suppliers. According to the Public Procurement Directives, preliminary market consultations have two objectives: to gather information from the market and to inform about procurement plans.

“Prior market consultation is particularly important for complex procurements that require a high degree of preparation. In this case, the implementation of a long-term LNG supply solution is a complex process, where errors need to be minimised at each stage.

“On the basis of the information received during the consultation, KN will be able to develop more precise specifications for the services to be procured and to be better informed about the choice of the most appropriate procurement procedure, planning the
appropriate duration of the procurement process," he said. 

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