Orlen, a Polish company, signs a Lithuanian deal to increase LNG deliveries

Polish top refiner Orlen has signed a five-year contract with Lithuanian oil & gas logistics company KN Energies to use a liquid natural gas (LNG), transshipment facility in Klaipeda exclusively.

This agreement is aimed at small-scale gas supplies, as LNG will be delivered via small ships to the station and then transported by trucks instead of oil tankers.

Gas from Klaipeda is sent to clients throughout the Baltic region, including Lithuania, Latvia and Estonia.

The press release by Orlen CEO Ireneusz Fafara stated that "the extension of the agreement with KN Energies represents an important step towards strengthening Orlen's position on the LNG markets in Baltic Sea...the transshipment facility in Klaipeda is expected to play a complementary and cost-saving role, allowing us to optimize logistics costs."

Orlen views Lithuania as a strategic market, and its subsidiary Orlen Lietuva has invested 970 million euro ($1.1 billion) to improve its refining production potential. The company announced this in a press release.

As part of its growth in renewable energy, the Polish refiner also considers investing into production of "green hydrogen" as part of their offshore assets.

(source: Reuters)