New deal with Statoil to cut gas price by third

DELFI / Orestas Gurevičius

The new deal will help save 23% on the LNG terminal’s maintenance and will shave more than a third off the price of gas supplied via the terminal, Butkevičius told a media conference on Monday.

“The main achievement [of the negotiations] is a deal on changing the gas price formula, which will allow to bring the LNG price closer to the one of pipeline gas, which should bring down the cost of LNG supply up to 25%, or €25.5 million annually, in turn cutting the terminal’s maintenance cost,” Butkevičius said.

The maintenance cost of the LNG terminal is expected to go down from €109.47 million to €83.97 per year, he explained.

Dalius Misiūnas, director of Lietuvos Energija, says that the renegotiated formula will bring the price of LNG to €16-20 per megawatt-hour, down by a third from the current €27-30.

“We cannot reveal the exact numbers, as we are bound by our deal with Statoil,” Misiūnas said, adding that Statoil’s latest shipment of LNG, which reached Klaipėda last week, will be paid for according to the new price.

The government estimates that the deal will allow heat producers to save €8.5 million per year; electricity consumers are expected to save €7.5 million; fertilizer producer Achema, €5 million; household gas consumers, €1.5 million; other consumers, €3.1 million.

Litgas and Statoil signed a five-year gas supply contract in 2014. However, as gas consumption in the country has plummeted, the Lithuanian government sought to renegotiate the terms.

According to the new deal, Statoil will send four tankers with 350 million cubic metres of LNG per year, instead of the six ships with 540 million cubic metres as per previous agreement.

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