LITGAS will supply gas for the third Estonian company
The natural gas supply and trading company LITGAS, part of the state controlled Lietuvos Energija energy company group, is increasing supply of natural gas to Estonia and signed the contract already with the third company from this country, i.e. electricity production and supply company VKG Energia which belongs to the largest manufacturer of shale oil and chemicals in Estonia Viru Keemia Grupp. Supply of gas to this company from Lithuania by using the LITGAS’s possibilities of transit through Latvia will be started in March.
LITGAS has already signed the contracts with the company Reola Gaas from Alexela Group to which gas is already being supplied, and Eesti Energia to which supply of gas will be started from the beginning of March. In total, LITGAS expects supplying up to 30 million cubic meters of natural gas to Estonia in 2015.
Last week, LITGAS signed the agreement with Latvijas Gaze regarding transit of natural gas through Latvia. Gas will be transported to VKG Energia subject to this agreement.
“These important contracts show that the Baltic gas trading market takes its first steps. Having developed the access to the international natural gas market through the LNG terminal, and having liberalized the Latvian market in the future, gas trading among the countries will be even more active,” the General Manager of LITGAS Dominykas Tuckus said. “While being at the forefront of these changes, LITGAS will acquire more experience and contacts which will later help to fight for the leading positions in the regional gas trading market”.
LITGAS has 15 non-binding master trade agreements with companies supplying approximately half of world’s LNG and also has possibilities to buy natural gas from other Lithuanian importers.