British index to determine gas price for Lithuania’s LNG terminal

Energy Minister Masiulis and PM Butkevičius
DELFI (V.Spurytės nuotr.)

“In the future, the gas price will depend on the international market. The contract with Statoil was concluded based on a different formula than the one with Gazprom. It means that Lithuania has already reduced risks – the gas price will no longer be affected by the oil price but instead by the clear and transparent British index. If the index falls, so will our gas price. How the index evolves depends on global technology,” Minister Masiulis told the Žinių Radijas radio.

According to the minister, in the near future numerous LNG terminals will be launched globally which should have a favourable impact on gas prices.

Gas price calculated based on the UK NBP is currently at around LTL 1,000 (EUR 290) per one thousand cubic metres of gas.

UAB Litgas concluded an agreement with the Norwegian liquefied natural gas supplier Statoil on the supply to the LNG terminal of 540 million cubic metres of gas annually starting in 2015. For five years Statoil will supply gas for lower than the average price on the global market.

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