UAB LITGAS is a natural gas supplier and trader, part of the largest energy company group in Lithuania Lietuvos Energija.
Currently the main activities of LITGAS are of strategic importance – the company supplies the minimum required natural gas volume to ensure minimal continuous operation of the Klaipėda’s LNG terminal.
From the moment of being appointed as a designated supplier by order of the Minister of Energy ensuring the minimum required gas quantity became the responsibility of LITGAS.
For this purpose on August 21, 2014, after almost a yearlong procurement procedure, a 5-year contract for the supply of 0.54 bcm of natural gas (around 950 thousand cubic meters of LNG) was signed with the Norwegian energy company Statoil (read more).
The designated supplier helps Lithuania to achieve its strategic goals: it creates and supports open access to the global natural gas market, gives the opportunity for suppliers to make use of advantages this market offers, ensures security of supply and promotes real competition on the Lithuanian natural gas market.
As a designated supplier LITGAS is recognised as an entity of strategic importance to national security.
In addition to being a designated supplier, LITGAS has ambitions to become a competitive player on the natural gas and LNG supply markets, also pursue growing activities of bunkering, i.e. supply of LNG as fuel for ships. The company has non-binding master agreements for LNG purchases with 15 global suppliers which combined supply more than half of the world’s LNG. These agreements enable quick purchases of gas by LITGAS on international spot markets (read more).
LITGAS was founded in December, 2012 by AB Klaipėdos Nafta, project development company and the operator of the LNG Terminal. In fall of 2013, state-controlled Lietuvos Energija became the majority shareholder in the company holding 66.67% of all shares.
33.33% of shares in LITGAS were controlled by AB Klaipėdos Nafta though it did not participate in the management of the company and has signed a shareholder agreement waiving any voting rights in general meetings of LITGAS shareholders.
In 2016 October Lietuvos Energija purchased the remaining 33.33% of shares from AB Klaipėdos Nafta and became sole shareholder of LITGAS.
Team and backing
At the moment LITGAS team includes some 10 experts: economists, managers, lawyers. As part of Lietuvos energija Group of companies LITGAS has access to Group’s resources which leads to stronger positions of the company.
For more information about the Group visit Lietuvos Energija Group website.
The LNG terminal in the Klaipėda Seaport created technical conditions for receiving natural gas from other suppliers and prerequisites for a competitive natural gas market in Lithuania.
In 2015 Terminal’s capacity due to the limitations of the Lithuanian transmission system will be around 1.4 bcm of gas annually, later increasing to around 4 bcm annually. This quantity of gas will be sufficient to meet the entire demand in Lithuania and around 90% of the demand in the Baltic States. The main function of the LNG Terminal is to accept and store liquefied natural gas, perform regasification and supply gas to the main pipeline.
The LNG Terminal project was implemented and is operated by AB Klaipėdos Nafta. For more information on the activities of the Terminal’s operator visit AB Klaipėdos Nafta website; for more information on the Terminal’s project visit LNG Terminal’s website.