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Lithuania in LNG deal with Statoil

Staff writer |
Lithuanian gas company Litgas signed a five-year deal with Norway's Statoil to import 540 million cubic meters/year of gas as LNG through the country's planned Klaipeda LNG facility.

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The price will be linked to the UK NBP spot gas price. The LNG project, based on a floating storage and regasification unit leased from Norway's Hoegh LNG, is expected to start operations from the end of the year.

Lithuania currently relies on pipeline imports of gas from Russia's Gazprom and sees LNG imports as a chance to diversify supply and strengthen its position in price negotiations with Gazprom.

"This historic agreement means that from the beginning of 2015, for the first time we will have a permanent alternative source of natural gas imports," Lithuanian Prime Minister Algirdas Butkevicius said in a statement on the Lithuanian government website.

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