Lithuania Sees Statoil as Development Partner for LNG Terminal

Lithuania chose Statoil ASA (STL) as a supplier for a new liquefied natural gas terminal, expecting the Norwegian company to help develop the Baltic nation’s LNG business projects, Prime Minister Algirdas Butkevicius said.

“It’s foreseen to work with them on a list of plans related to transporting LNG, bunkering and so on,” Butkevicius said today on LRT radio in Vilnius, the capital. “That would bring added revenues” for state-owned terminal operator Klaipedos Nafta AB and gas trader Litgas AB, he said.

Lithuania plans in January to start importing fuel via a floating regasification terminal at the Baltic Sea port of Klaipeda to reduce reliance on deliveries from Russia. The government yesterday said it picked Statoil over other unnamed participants in an international tender for a base supplier.

Statoil intends “in the shortest time possible” to sign a five-year agreement with Litgas on the supply of 0.55 billion cubic meters per year to the Lithuanian terminal, Morten Eek, a spokesman for the company, said by phone today. Contract documents are “almost completed,” he said.

Energy Security

Lithuania will pay Statoil a price that’s lower than the average on the global LNG market, Butkevicius told reporters earlier today. He declined to say whether it would be less than the utility Lietuvos Dujos pays OAO Gazprom for supplies.

“What’s most important is ensuring energy security, which we’ll have at the end of this year, diversifying our gas market and getting an alternative supplier,” Butkevicius said.

Litgas plans to sign agreements with other suppliers from whom it could buy additional LNG, as needed, at spot-market terms, according to the company’s website.

Qatar Liquefied Gas Co., the world’s biggest LNG producer, is a “serious candidate” for a contract, Lithuanian Energy Minister Jaroslav Neverovic said in an interview on May 8.

The terminal, with annual capacity of 3 billion cubic meters a year, plans to regasify about 1 billion cubic meters during 2015, according to its website.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editors responsible for this story: Balazs Penz at bpenz@bloomberg.net Pawel Kozlowski, Michael Winfrey

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