Orlen (PKN.WA) has signed a five-year agreement with Lithuanian oil and gas logistics firm KN Energies for exclusive use of a waterfront liquid natural gas (LNG) transshipment station in Klaipeda, according to Reuters.

The agreement focuses on small-scale gas supply as LNG received at the station will be transported via small ships and later on with trucks as opposed to oil tankers.

The gas from Klaipeda will be sent to clients in northeastern Poland and other Baltic countries such as Lithuania, Latvia, and Estonia.

“The extension of agreement with KN Energies is an important step in strengthening Orlen group’s foothold on the LNG market in Baltic Sea… the transshipment terminal in Klaipeda will play a complementary role and will allow us to optimize logistics costs,” Orlen CEO Ireneusz Fafara said in the press statement.

The Polish refiner expressed its desire to developing of Lithuanian offshore assets as it considers investing in production of green hydrogen as part of its renewable energy growth.