Gas prices to be ‘slightly lower’ under new LNG deal with Statoil

Lithuania's LNG tanker "Independence"

The companies will sign amendments to the 2014 contract that, based on unofficial information available to BNS, will extend the term for another five years and will provide for smaller annual gas volumes and a slightly lower price.

Prime Minister Algirdas Butkevicius and the heads of Lietuvos Energija and Litgas will hold a news conference to announce the new agreement with the Norwegian supplier, the government’s press office said on Friday.

in August 2014, Litgas and Statoil signed a five-year contract for the supply of 2.7 billion cubic meters of LNG, or 540 million cubic meters annually, an amount that is too large for Lithuania alone as obstacles in Latvia are preventing Latvian and Estonian companies from purchasing it.

Lithuania’s fertilizer manufacturer Achema, which is the single largest natural gas consumer in the country, is also likely to sign a contract with Statoil by the end of January.

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