Lithuania hopes for cheaper gas deal with Statoil, PM says

Statoil
Reuters/Scanpix

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“Litgas is conducting talks with Statoil and we are hoping that the deal will be signed in the near future. And we hope that the Price Commission will once again review gas prices and lower them,” Butkevičius told reporters at his annual media conference.

The negotiations should be concluded soon “after the Epiphany”, or January 6, he added.

Litgas and Statoil signed a five-year deal in late 2014 on supplying 2.7 billion cubic metres of LNG to Lithuania’s newly-built LNG terminal in Klaipėda.

However, as gas consumption has dropped significantly over the last several years, the government is thought to be conducting talks with Statoil over extending the contract for five more years with smaller volumes and lower price.

Under the current deal, the gas price is linked to gas index in the UK and largely correlates with those in the European Union. The five-year deal is estimated to be worth between €724 million and €868 million.

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