The situation in Lithuania has radically changed with the launch the Klaipėda liquefied natural gas (LNG) terminal and negotiations with Russia's gas giant Gazprom on a new gas supply contract are no longer as important for the country as they were in the past, Energy Minister Rokas Masiulis says.
© Reuters/Scanpix

Lithuania's current long-term contract with Gazprom is set to expire at the end of this year.

"We have exchanged businesslike letters with Gazprom stating that both sides are willing to talk about gas supply. There have been no active steps from either side so far. We see that the situation in Lithuania has changed radically with the construction of the LNG terminal," Masiulis, who heads a working group earlier appointed by the government for negotiations with the Russian supplier, told BNS in an interview.

According to the minister, Lithuania next year will need just around 0.5 billion cubic meters of Russian gas, not including that needed by the fertilizer manufacturer Achema. The country could buy that amount from Latvia and Estonia, or, based on the take-or-pay clause of the supply contract with Gazprom, use the gas it will not purchase from the Russian supplier this year.

"At the end of the year, we will look at how much gas has been left from the old contract. Based on preliminary estimates, (the remaining amount of) gas might be sufficient for us for another year. In any case, I think that discussions with every supplier, including Gazprom, should continue and that we must look for the most economical, the best option," he said.

Masiulis said that a new contract with Gazprom could be concluded for a period until 2019, when Litgas' contract with Norway's Statoil on the supply of LNG to Lithuania expires and when a gas interconnection between Lithuania and Poland is expected to be completed.

According to the minister, negotiations are already underway between Lithuania's natural gas transmission grid operator Amber Grid and Gazprom on transit gas shipments to Russia's Baltic Sea exclave of Kaliningrad, but no details are being disclosed about these talks.

The long-term contract between Lietuvos Dujos (Lithuanian Gas) - now Lietuvos Dujų Tiekimas (Lithuanian Gas Supply) - and Gazprom expires at the end of 2015. The contract was signed back in 2004, when the Russian company bought a 34-percent stake in Lietuvos Dujos for 100 million litas (EUR 29m).

BNS
Leave a comment
or for anonymous commenting click here
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...