AB Klaipedos nafta : Public consultation regarding amendment to the Regulations for use of the Liquefied Natural Gas Terminal

APPROVED

By Order No BV-58

of the Chief Executive Officer of AB Klaipėdos nafta CEO

of 18 April 2014

(edition approved on __ of ________ 2022 by

order No. Order No )

AMENDMENT TO AB KLAIPĖDOS NAFTA

REGULATIONS FOR USE OF THE LIQUEFIED NATURAL GAS TERMINAL

AMENDMENT TO AB KLAIPĖDOS NAFTA

REGULATIONS FOR USE OF THE LIQUEFIED NATURAL GAS TERMINAL

___ ________2022 No

1. To supplement the Regulations with paragraph 221:

"221. Available Free Capacities shall be allocated during the Annual Terminal Capacities Allocation Procedure for the time period, regasification LNG quantity requested By the Applicant. As part of the Annual Terminal Capacities Allocation Procedure, not later than 25 May of each year, the Operator shall publish on its website the Invitation, where the following information must be indicated:

221.1. Terminal Capacities being allocated in accordance with the types specified in paragraph 18 of the Regulations;

221.2. the total amount of Terminal Capacities being allocated;

221.3. Terminal Capacities allocation start and end dates, if such are determined;

221.4. the minimum amount of capacities requested to be obtained by the Applicant or the amount of capacities being allocated per Applicant and the minimum increment of the amount of capacities exceeding the minimum amount of capacities to be allocated;

221.5. the form and means of submission of Requests;

221.6. the time limit for submission of Requests which may not be shorter than 15 (fifteen) calendar days."

2. To supplement the Regulations with paragraph 381:

"381. If the Applicants, whose Requests have not been rejected, request to obtain Terminal Capacities in excess of those being allocated in the respective Gas Year, the Operator shall, taking into account the limitations provided for in paragraph 20 of the Regulations, offer the Terminal Capacities to the Applicants in the following order of priority:

381.1. Firstly, Terminal Capacities shall be provided to the Designated Supplier to the extent of the quantity necessary to ensure the fulfilment of Terminal mandaroty quantity supply obligation set by the legal acts;

381.2. The remaining Terminal Capacities shall be provided to the Applicants according to the principle of proportionality on the basis of the amount of Terminal Capacities requested to be obtained indicated in the submitted Requests. The principle of proportionality shall apply to the allocation of Terminal Capacities as follows:

381.2.1. Firstly, in order to achieve the efficient allocation of capacities according to the principle of proportionality, the Operator shall reduce the amount of capacities requested to be obtained by Applicants indicated in their Requests, where the amount of capacities requested to be obtained exceeds ½ of the amount of capacities being allocated, taking account of the amount of capacities allocated on the basis of subparagraph 381.1 of the Regulations, up to the maximum allowed amount of ½ of the capacities being allocated;

381.2.2. All Terminal Capacities requested to be obtained by Applicants indicated in their Requests, other than those allocated under subparagraph 381.1 of the Regulations, shall be adjusted on the basis of subparagraph 381.2.1 of the Regulations and aggregated to determine the total amount of capacities requested to be obtained by all Applicants;

381.2.3. Taking into account the total amount of capacities requested to be obtained determined on the basis of subparagraph 381.2.2 of the Regulations, the proportionate (percentage) share of the amount of Terminal Capacities being allocated shall be determined for each Applicant according to the total amount of capacities requested to be obtained allocated to that Applicant;

381.2.4. According to the procedure set out in subparagraph 381.2.3 of the Regulations, the Operator shall determine the amount of Terminal Capacities for the particular Applicant, arithmetically round it up to a whole number expressed in million MWh and, if the result obtained

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does not exceed the amount of the Terminal Capacities being allocated, shall allocate it accordingly.

381.2.5. Where capacities to be allocated on the basis of subparagraph 381.2.4 of the Regulations exceed the Terminal capacities being allocated, priority shall be given to those Applicants, who have used the Terminal's services during the last three years, i.e. the Request of the Applicant, who has not used the Terminal's services during the last three years, shall be excluded.

381.2.6. Where, after application of the priority within the meaning of subparagraph 381.2.5 of the Regulations, capacities to be allocated still exceed the Terminal's capacities being allocated, the Terminal capacities shall be allocated on the basis of the First Come, First Served principle, taking into account the date and the time of submission of the duly made Request, i.e., by eliminating the latest duly submitted Request and by reassessing the exceeding of the capacities being allocated."

3. To establish that:

1. These amendments to the Regulations shall exclusively apply and be valid only for the allocation of Terminal capacities for the period from 1 October 2022 to 31 December 2022 during the Annual Capacity Allocation Procedure organised by the Operator.
2. From the date of approval of the supplements to the Regulations and throughout the period of validity of the supplements, provisions of paragraphs 22 and 38 of the Regulations shall not apply.
3. These supplements to the Regulations shall enter into force within 30 days of the National Energy Regulatory Council's decision on approval of the provisions supplementing the Regulations.
4. The supplemented Regulations approved by Order of the Chief Executive Officer of
   AB Klaipėdos Nafta shall be published on the website of AB Klaipėdos Nafta.

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