The gas and electricity supplier Lietuvos Energijos Tiekimas (LET) owned by one of the biggest energy groups in the Baltic countries Lietuvos Energija signed three new agreements on the supply of natural gas with Latvian suppliers.
Lietuvos Energijos Tiekimas offered the best price of gas in the public procurement procedure held by the Latvian company Rigas Siltums and won a tender giving it the right to supply gas to this company in May.
This is the second time this year when Lietuvos Energijos Tiekimas won a tender held by the Riga-based district heating company. Rigas Siltums also bought gas from LET in March.
In May, the company will supply yet another two large Latvian companies with gas on the basis of newly concluded agreements. Confidentiality requirements do not allow disclosing names of these buyers.
Agreement indicates competitiveness
“These sales agreements reconfirm the fact that we are competitive in the region even during the warm season, when the need for gas decreases and its demand increases. Diversified sources of the supply of gas and its efficient use is an essential condition determining the competitiveness of Lietuvos Energijos Tiekimas. By operating and competing in the global LNG market, we are constantly monitoring it and are able to observe and take advantage of the emerging opportunities. This allows us to be flexible and offer our customers the best price even in the face of fierce competition”, says Darius Montvila, the CEO of Lietuvos Energijos Tiekimas.
With the natural gas market integrating and the processes of supply becoming more complex, the criterion of diversified sources is becoming increasingly important for customers when choosing a natural gas supplier. Lietuvos Energijos Tiekimas is the only company in the region that has secured gas supply from three different sources. The company has a long-term LNG supply agreement with the Norwegian Equinor, it also purchases gas on the short-term LNG transaction market, gas supplied via pipelines, and uses the Incukalnis Underground Gas Storage Facility in Latvia.