Lithuania's gas trade company Litgas, which is part of the state-owned energy holding Lietuvos Energija (Lithuanian Energy), on Thursday signed a revised LNG supply contract with Norway’s Statoil.
"Arctic Aurora" LNG tanker
"Arctic Aurora" LNG tanker
© M.Milinio nuotr.

Amendments to the deal would help reduce the costs of maintenance of the liquefied natural gas (LNG) terminal in Klaipėda and, simultaneously, the prices of energy for end-users by more than one-third, Litgas said in a press release.

“We have managed to find mutually acceptable agreements, which help reduce the LNG facility’s maintenance costs and energy prices and also help ensure continuous operation of the terminal… According to our calculations, the annual expenditure incurred by natural gas consumers due to the LNG facility’s price component may decrease by more than one-third – approximately €33.8 million – thanks to the amendments to the contract,” Dalius Misiūnas, Lietuvos Energija chairman and CEO, said in the statement.

In view of decreasing demand in natural gas in the energy sector, which has been obliged to purchase gas from the LNG terminal, the annual gas purchase volume has been reduced by about one-third – to approximately 3.6 TWh (350 million cubic meters), from approximately 5.5 TWh (540 million cubic meters). The term of the contract has been extended until the end of 2024 and will now coincide with the term of the lease of the Independence, the LNG facility’s floating storage and regasification unit (FSRU).

The parties to the contract have also revised the price formula, which will bring the price of LNG supplied under this contract closer to the price of pipelined gas. As estimated by Litgas, the average LNG import price may decrease to around €16–21 per megawatt-hour (MWh) this year, from €29.04 per MWh in 2015.

As a result of lower infrastructure costs, heat users will each year save €11.3 million, electricity users – €9.8 million, industrial users – approximately €7 million, households and companies consuming gas – €2 million and €3.6 million, respectively.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Coronavirus emergency may mean restrictions, release from obligations for firms

The Lithuanian government's decision to declare a state-level emergency due to the coronavirus...

Finance minister: coronavirus to affect economy

The widening coronavirus outbreak will have implications for the Lithuanian economy , Finance...

Lithuanian businesses might feel coronavirus effect in spring

The coronavirus outbreak in China is already affecting Lithuanian businesses as some companies...

Leader in gaming and VR platforms to undergo major expansion in Lithuania

Unity Technologies , creator of the world’s most widely used real-time development platform for...

German polymer specialist establishing microduct systems production unit in Klaipeda

REHAU , a family-owned polymer specialist with annual sales of around EUR 3.5 billion, is...

Top news

Coronavirus patients to be treated in five hospitals

People infected with the coronavirus will be treated in five Lithuanian hospitals , Deputy Minister...

Siauliai decides not to cancel mass events and urges residents to consider risk

The authorities of Lithuania's northern city of Siauliai have decided not to cancel mass events...

Matulionis appointed Lithuania's NATO ambassador (1)

Lithuanian President Gitanas Nauseda appointed Deputy Government Chancellor Deividas Matulionis as...

1st coronavirus case confirmed in Lithuania (2)

The first coronavirus case was confirmed in Lithuania early Friday morning, the country's Health...

First Lithuanian coronavirus patient's family members undergoing tests

The Lithuanian woman, 39, who was diagnosed with the new coronavirus on Friday, evaded contact with...

|Maža didelių žinių kaina