Lithuanian natural gas supplier and trader UAB LITGAS, part of Lietuvos Energija energy company group, signed a LNG supply contract with Norwegian company Statoil ASA to ensure continuous operation of the Klaipėda LNG terminal, LITIGAS said in a release. The contract also covers possibilities of LNG reloading – a new commercial activity in the Baltic Sea region.
Starting in 2015, Statoil will be supplying an annual volume of 540 million cubic meters of natural gas (approx. 950 thousand cubic meters of LNG) to ensure continuous operations of the Klaipėda LNG terminal. LITGAS has an obligation to ensure this supply volume as the designated supplier approved by a decree of the Ministry of Energy.
Under the mid-term contract signed with Statoil, the first LNG cargo is expected to be delivered to the Klaipėda terminal at the end of December 2014 so that the terminal could start commercial operation from January 1, 2015. Each year Statoil will deliver 6-7 such cargos to Klaipėda port.
The contract also provides possibilities for cooperation in LNG reloading which is a new type of activity in the Baltic Sea region.
Gas in liquid form would be pumped to smaller tonnage vessels at the Klaipėda terminal and shipped to small terminals.
Successful development of commercial reloading operations would increase the usage of the terminal and would at the same time lower its maintenance costs which are being covered by Lithuanian consumers.
The price of LNG supplied to Lithuania will be linked to the value of the NBP index (Great Britain’s natural gas exchange).