Lithuania will reduce the consumption of Russian gas with Norwegian Statoil

Lithuanian gas company Lietuvos duju tiekimas (LDT), which provide gas supplies to over half a million consumers across the country, announced signing of the first contract for the supply of liquefied natural gas (LNG) from Norway’s Statoil. The deal with the Norwegians should cover more than half of the annual requirement LDT in Gaza, which will reduce purchases from Gazprom by about 300 million cubic meters.

The decision to find a new gas supplier, the head of the LDT mantas mikalajunas explained the unfavorable price policy of “Gazprom” and the desire to diversify supply.

“Assessing the proposals of “Gazprom” and interviewing participants in the LNG market, we chose the option to import more than half of the annual demand is about 300 million cubic meters of gas Statoil LNG through the terminal. With this contract, we are diversifying our portfolio of supplies and will be able to maintain stable prices for natural gas for our customers, regardless of the pricing policy of Gazprom, which turned in an unfavorable direction for us”, — quotes Mikalajunas the press service of the LDT.

In turn, the head of Lietuvos energija energy (LDT is a part of it) Dalius Misiūnas assured that the company will continue to have flexibility in the choice of suppliers to ensure that consumers in Lithuania best conditions.

To disclose the price at which LDT will purchase LNG at Statoil, Misiūnas refused, citing the terms of the contract. According to him, the price matches the market and better than the one that is installed on the gas pipeline “Gazprom”.

“In the first quarter of this year, we buy gas from “Gazprom” under the old contract. Depending on the amount consumed, perhaps, in the end, it will require additional amounts, then we will compare the prices and see where to purchase”, — explained the head of Lietuvos energija (quoted by

The first batch of Norwegian LNG for LDT, according to Misiūnas, can be delivered to 16 February 2016, when Lithuania marks its national day Day of restoration of Lithuanian state.

Earlier on the procurement of LNG in Norway agreed another subsidiary of Lietuvos energija company Litgas, Statoil signatories with a five-year agreement on procurement by 540 million cubic meters of gas per year. Prior to the signing of this contract Lithuania is dependent on Russian gas on 100%. Official representative of “Gazprom” Sergei Kupriyanov then characterized the contract with Statoil as “non-economic decision, pure politics.”

In the spring of 2015, the head of Lietuvos Enerija stated that his company “can’t risk it,” signing with Gazprom a new long-term agreement at a fixed price. “It would be rational to speak about the contract for a year or a few years,” said then Misiūnas.

In November 2015, it became known that Lietuvos energija expects to start receiving LNG from the United States. It was assumed that these deliveries can already begin in February 2016.

Yesterday the Financial Times reported on the preparations for Gazprom to price wars in Europe and the company intends to lower gas prices in Europe to inappropriate for competitors from American LNG projects. According to analysts, this will allow Gazprom to defend its market share in the region, bringing a significant amount of revenue.

Commenting on media reports, the Chairman of the Board of “Gazprom” Alexander Medvedev savell that does not see the need to start price wars. According to him, companies do not see any reason to supply LNG to Europe, while its exports to Asia can bring producers greater profits. “We are calm but attentive,” — said Medvedev, noting that if necessary, Gazprom will be able to use the reserves and to reduce their costs of production and transportation of gas.