LNG agreement with Statoil in sight, PM says

Statoil
Reuters/Scanpix

Lithuania has worked out a deal with the Norwegian company Statoil to review its contract for liquefied natural gas (LNG) supply, Prime Minister Algirdas Butkevičius has said. A new agreement might be signed soon.

“We expect it to be signed in the nearest future. We keep in touch nearly every day. Based on the information provided to me today, the agreement has not been signed yet, because some of Statoil’s experts could not do it physically as they were taking part in arbitration,” Butkevięius told reporters on Wednesday after a government meeting.

Lithuania has singed a five-year contract with Statoil for supplying gas to its LNG terminal in Klaipėda. However, as gas consumption in the country has plummeted, Litgas, the country’s gas company, wants to review the terms.

If Lithuania and Statoil agree to cut gas supply volumes, it would substantially reduce regulated costs of gas that arise from the necessity to realise surplus volumes, which in 2016 may reach approximately 280 million cubic metres.

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