Lithuanian gas supplier and trader Litgas signed a Liquefied natural gas (LNG) supply agreement with Norwegian oil and gas company Statoil on Thursday, expected to increase the Baltic country's energy security.
"I am pleased that our government, which has set a target to achieve real independence from the only Eastern gas resource, opens a new page in energy policy today," Lithuania's Prime Minister Algirdas Butkevicius told a press conference after the contract was signed.
From 2015, Statoil will supply an annual volume of 540 million cubic meters of natural gas for five years to ensure continuous operations of the port city Klaipeda LNG terminal.
According to Butkevicius, this "historical" contract means that from 2015, Lithuania for the first time will have a permanent alternative for natural gas imports.
"It is a big and important step in increasing Lithuania's energy security which leads to the reduction of gas prices for our customers," he added.
Dominykas Tuckus, general manager of Litgas, said in a statement: "This strategic contract will help to ensure the availability of an alternative natural gas import source which will enable us and other Lithuanian companies to procure natural gas on international markets from various suppliers at any time."
Favorable conditions for LNG supply have been negotiated with the Norwegian company, which would help to increase Lithuania's competitiveness in international markets and improve its negotiating position with Russia's Gazprom, Butkevicius noted.
Currently, Lithuania is entirely dependent on Russian gas supplies.
The first LNG cargo is expected to be delivered to the Klaipeda terminal at the end of December 2014.
The Lithuanian LNG terminal needs about 3.5 billion cubic meters of gas per year to fully meet the country's needs.
http://www.neurope.eu/article/lithuania-signs-gas-supply-contract-norways-statoil