Lithuania's natural gas supply and trading company Litgas plans to enter a new field of activity - small-scale liquefied natural gas (LNG) supply and bunkering. Currently, Litgas together with Statoil are analysing cooperation opportunities and plan to agree on the form of cooperation within the second quarter this year, the company said.
Dujovežis "Golar Seal", Suskystintųjų gamtinių dujų (SGD) laivas-terminalas "Independence"
© M.Milinio nuotr.

"Klaipėda LNG terminal currently is the only LNG terminal of such size in the Baltic Sea capable of reloading LNG to smaller LNG bunkering vessels, such as bunkering ferries, containerships and other LNG propelled vessels, as well as to supply gas to industrial customers in smaller quantities. As new regulations for sulphur emissions came in to force, ship owners are increasingly looking to LNG as a cleaner fuel. Klaipėda LNG terminal is closer to our potential clients than other terminals with similar capabilities. We have a competitive advantage from that perspective," says Dominykas Tuckus, CEO of Litgas.

According to Tuckus, the company already started discussions with potential clients and is seeking to conclude preliminary agreements.

The demand for LNG in the Baltic region is increasing and both companies believe that this market will be interesting in the future. Having already put in place a value chain with access to self-produced LNG, ship transport capacity and access to the Klaipeda terminal, Statoil and Litgas believe that cooperation between both companies should bring synergies that will benefit the potential cooperation between the two companies on small scale LNG distribution in the region.

Opportunity to cooperate in small scale LNG and bunkering areas was included in the 5 year LNG supply contract ensuring minimum regasification regime for the terminal signed between Litgas and Statoil in August 2014.

Litgas UAB is a Lithuanian natural gas supply and trading company. It is a part of the state-controlled Lietuvos Energija energy company group.

Renovated Palanga Airport will open next year

Next year, Palanga Airport will make travellers welcome in its renovated premises, announced...

Only Bulgaria has higher income inequality than Lithuania

The way income and wealth are distributed across society determines the extent to which individuals...

Medical imaging company raises $1.7M seed round to bring AI into clinical radiology practice

Oxipit , the authors of ChestEye AI-powered radiology software suite is announcing today the close of...

Startup providing product reviews plans further expansion in Lithuania

Bazaarvoice who first established a branch in Vilnius a year ago plans to implement further...

State and municipalities receive EUR 174 mln in unplanned revenue

Lithuania's state and municipal budgets received 5.344 billion euros in revenue in January-June, 3.4...