Lithuania to supply Estonia with natural gas from LNG terminal

Source:Xinhua Published: 2015-1-28 11:43:25

Lithuania will supply natural gas to Estonia, the state controlled natural gas supply and trading company LITGAS announced on Tuesday.

According to the announcement, supplies will be provided as of February 1. LITGAS claims it is the first company in Lithuania and one of the first in the Baltic countries to provide other countries with natural gas supplies.

The supplies will be provided from the new liquefied natural gas (LNG) terminal in Klaipeda seaport, which started its commercial operations this year.

"After LNG terminal in Klaipeda has started its operations, we acquired new options to import natural gas from various sources and offer them to customers in other countries for competitive prices," Dominykas Tuckus, general manager of LITGAS, said in a statement.

"Furthermore, Lithuania gained momentum to become a regional hub for natural gas trading," he added.

According to LITGAS, the supplies will be provided via the pipeline in Latvia. The company expects to supply Estonia with up to 30 million cubic meters of natural gas this year.

LITGAS has a five year agreement with Norway's energy company Statoil on LNG supplies. Norwegian company will provide the terminal with 950,000 cubic meters of LNG, equivalent to 540 million cubic meters of natural gas annually.

Lithuania's LNG terminal and its floating storage and regasification vessel Independence officially started its commercial operations on the first day of 2015 in order to provide energy independence from Russian gas.

Posted in: Europe

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