PART OF LIETUVOS ENERGIJA GROUP
DRUSKININKAI CASE MODEL –THE TURNING POINT FOR SMALL-SCALE LNG APPLICATION IN LITHUANIA
2
Power generation Renewables Distribution (DSO) Energy supply
Shared Services (IT, HR, Accounting, Procurement, Legal, Communication)
Lietuvos Energija (LE) Group structure
merger in 2019
3
COMPANIES
24 companiesin LE Group
24
1.3 BLN
1.6 M
18 TWh>4000
REVENUES
Revenues in 2018 –above EUR 1.3 billion
EMPLOYEES
We have more than 4000 employees
CLIENTS
More than 1.6 Mclients in Lithuania
ENERGY PORTFOLIO
1 TWh power production6 TWh power sales11 TWh natural gas sales
LE Group key figures 2018
Commercial activity:
SSLNG development
Regulated activity:
LNG for constant terminal operations
Offshore LNG (reloading)
Onshore LNG
(truck loadings)
Long-term contract with
Equinor ASA up to 2024
Master Trade Agreements with
12 global LNG suppliers
Other business areas
Designated supplier (10 years) –
entity of strategic importance to
national security
Commercial activity:
LNG trading
SPOT LNG
purchasesSPOT LNG sales
Commercial activity:
Gas supply and trading
Leading gas
supplier to
businesses
Leading gas
supplier to
households
Gas sales in other
Baltic countriesAnnual delivered volume 3.8 TWh
(4 LNG cargoes per year)
LET natural gas activities
4
Lithuanian natural gas consumption 2010 – 2018 (TWh)
17%
57% 49%39%
100%83%
43% 51%61%
0%
20%
40%
60%
80%
100%
2014 2015 2016 2017 2018
Pipeline gas
LNG
Lithuanian natural gas import structure 2014 – 2018 (%)
Natural gas market in Lithuania
31,8
35,1 34,2
2826,6 26,5
23,7 24,422,4
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016 2017 2018
New opportunities for SSLNG development in Lithuania (onshore sales)
GWh
3,2
13,4 17 15,3
20
35
17,8
52,8
71
-
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
Export Local Total
2017 Q4 2018 2019 Q1
Off-grid market in Lithuania Alternatives of supply
II alt
5,0 mln. Eur.
2019m.
III alt
LNG re-gas unit
2018m.
I alt
4,6 mln. Eur.
2021m.
GIPL (Gas
Interconnection
Poland –
Lithuania)
DSO connected
DSO disconnected
Druskininkai – icebreaker in Lithuanian LNG re-gas market (first year of operations)
Before 2018 Status quo
Local grid (disconnected
from national distribution
system)
The only source of supply
(pipeline from the
Belarus)
High natural gas prices
(the highest in Lithuania)
1000 users disconnected
(by choice)
Temporary LNG re-gas
infrastructure well
established
Diversification of
sourcing settled
Security supply
implemented
2 800 household clients
8 business clients
New ones approaching
Permanent LNG
infrastructure being
accomplished at 2020 Q2
Free market competition
achieved
Natural gas prices for
households decreased by
double
Contagious example and
snowball effect in the market
(new LNG re-gas cases
established and developed)
The Plan: Sustainable value added services at a market
responsive pricing
The milieu The imperative The success
Supply and demand
Competitiveness
Legal environment
Additional resources
Supply efficiency
Operational flexibility
Technological capacity
Continuous enhancements
Reliability and sustainability
Value driven partnerships
Constant innovations
Customer a winner
Main benefits of SSLNG value chain the Baltic region
Clean fuel
Scalable projects
Market competition
Lower prices
Supply security
Availability and reach
Increased market reach and
regional exports
Higher usage of clean fuel
Market competition and
lower LNG prices