Lithuania negotiates LNG price cut with Statoil

Lithuania’s prime minister Algirdas Butkevicius informed the LNG supply deal with Statoil of Norway has been amended. 

According to the newly agreed terms, the contract has been extended from five to 10 years while the volume Lithuania will import from Norway increased from 2.7 billion cubic meters to 3.7 bcm. Annual sales volumes will decline from 540 million cubic meters to 350 mcm as Lithuania’s gas consumption declines.

Dalius Misiunas, head of Lietuvos Energija revealed that the price was reduced by 15-20 percent. Misiunas hinted at the new deal in November 2015, due to Lithuania’s falling demand.

The reviewed price is forecast to be in the range between €16-20 per megawatt-hour, closer to the price of gas supplied by Gazprom.

Lithuania’s gas supply deal with Russian Gazprom expired at the end of last year but the contract left an option for Lietuvos Energija to buy a certain amount of gas from Gazprom in 2016, Misiunas told Reuters following the conference with the prime minister.

LNG World News Staff