KN suspends acceptance of Novatek's cargoes at Lithuania’s LNG terminal

In KN’s view, Gennady Nikolayevich Timchenko, included in the EU sanctions list (EU Council Regulation 2022/336 implementing Regulation No. 269/2014), can be considered a controlling person of the Novatek group under EU law.

According to the available data, Novatek group companies supply LNG cargo to LNG terminal users. The sanctions imposed prohibit entities from engaging in activities the object or effect of which is to circumvent restrictive measures.

Although KN itself does not have contracts with Novatek or its related companies, the company contacted LNG terminal clients on its own initiative and asked to ensure compliance with sanctions in their operations. In the absence of information that LNG terminal users are complying with the sanctions in respect of LNG cargoes scheduled to be unloaded at the LNG terminal, acceptance of Novatek's cargo at the LNG terminal is suspended.

KN is the operator of the LNG terminal, which accepts LNG cargoes ordered by the customers of the LNG terminal according to the set schedule, provides regassification and reloading services. In the market, LNG cargo is procured and delivered by the terminal users themselves.

KN also approached the Lithuanian authorities assessing the compliance of agreements with national security interests and coordinating the application of sanctions, asking for additional recommendations and clarification on the application of EU sanctions in the company's activities as a terminal operator when LNG cargoes are purchased and unloaded by LNG terminal users.

In 2021 62% total of consumed gas in Lithuania, Latvia, Estonia and Finland was delivered through the LNG terminal. The biggest share was imported from the USA through the infrastructure in Klaipeda last year.

A total of 7 companies used the LNG terminal: 4 from Lithuania, 2 from Estonia and 1 from Norway.