Lithuania's fertilizer manufacturer Achema, the country's single largest natural gas consumer, is looking to sign a long-term gas supply contract that would provide more stability and make it easier to plan operations, according to the company's CEO.
Ramūnas Miliauskas
© DELFI / Kiril Čachovskij

Achema now purchases gas from two suppliers, Russia's Gazprom and Norway's Statoil, for the first time in the company's history.

Achema's head Ramūnas Miliauskas says the company is negotiating with seven liquefied natural gas (LNG) suppliers on purchases starting in 2017 and is also holding talks with Gazprom.

Achema does not have any long-term gas supply contract after its 10-year contract with Gazprom expired in late 2015.

"We don't think we are going to sign a 10-year contract, like we did with Gazprom. The market has changed and long-term contracts of two to three years are now a normal practice in the world," the CEO told BNS when asked what kind of gas contract would be acceptable to Achema.

"We'll see who offers better terms. We may diversify our gas supplies. When we have all the offers, we'll discuss them and then we'll see," he added.

The fertilizer manufacturer could purchase LNG from the United States, provided that it is suitable for its production, Miliauskas says. Gas of high calorific value, which is suitable for the energy sector, is not suitable for fertilizer manufacturers.

Achema uses around 1.2 billion cubic meters of gas annually. Last February, the company signed a contract with Statoil to purchase around 700 million cubic meters of Norwegian gas by October. Before that, it used exclusively Gazprom's gas.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
Commenting is allowed for registered users only!
By posting, you agree to terms
Read comments Read comments

Chances for Lithuania to get more funding for N-plant closure increasing – expert

A proposal for the European Parliament to approve the allocation of 780 million euros for the...

European Parliament's rapporteur proposes EUR 780 mln for Lithuanian N-plant closure

The European Parliament is recommended to approve 780 million euros in funding for the Ignalina...

Energmin calls deal on synchronization scenario 'decision of the decade'

Lithuania, Latvia and Estonia have reached a long sought-after agreement that opens the way for the...

Technical scenario for Baltic grid synchronization approved in Brussels (Updated)

The project for the synchronization of the Baltic power grids with the Continental European system...

Danpower agrees to put off amicable deal's implementation

German energy company Danpower has agreed to postpone the implementation of the State of Lithuania's...