LITGAS signs agreements with seven global LNG suppliers

FSRU Independence, a floating LNG storage and regasification unit to be used as an LNG imported terminal in Lithuania.
Photo by Klaipėdos Nafta

This paves way for Lithuanian market to receive gas from companies accounting for approximately half the volume of the world’s liquefied natural gas supply.

According to LITGAS, the company will be able to purchase LNG fast and effectively on the spot market, and to dynamically respond to changes in the international market. LITGAS will be able to offer alternative pricing tied to global LNG markets.

The company will start supplying LNG once the new Klaipėda LNG Terminal is operational.

Common agreements establish provisions related to payment, shipping, responsibilities, confidentiality and other conditions. By concluding the agreements LITGAS acquired potential suppliers whose offers to buy or sell LNG it will be able to choose later on. For each such purchase separate contracts will be made, stating the exact amount of gas, price and supply conditions.

In February the Ministry of Energy confirmed UAB LITGAS as a supplier of gas for the LNG Terminal. The minimum amount of gas to be supplied in order to ensure continuous operation of the terminal is 540 million cubic metres.

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