LNG from Lithuania will be supplied to Estonia and Poland
The liquefied natural gas supplier LITGAS and the natural gas trading company Lietuvos Duju Tiekimas, both of which belong to the Lietuvos Energija group, will implement Lithuania’s first large deal of supplying liquefied natural gas (LNG) by land. The LNG will be transported from Klaipeda to consumers in Estonia, Poland, and Lithuania by as many as 100 LNG trucks.
In mid-December, LITGAS and Lietuvos Duju Tiekimas, cooperating with Shell, will supply approximately 4000 cubic meters of LNG from “Independence” floating storage unit to Klaipeda’s small-scale onshore LNG terminal. From there it will be supplied for four companies – LNG will be transported by trucks to Estonia, Poland, and Druskininkai town in Lithuania.
“We are glad that once the commissioning of the small-scale onshore LNG reloading station has been completed and the commercial operation has started, we already have the full operational LNG supply chain. The LNG station in Druskininkai that started operating in October will be supplied with gas from Klaipėda. Lithuania is becoming an important player in the Baltic small-scale LNG supply market, and thus contributes to a more competitive supply of gas to our consumers,” said Lithuanian Minister of Energy Zygimantas Vaiciunas.
“We have accumulated a lot of expertise and experience in the large-scale LNG supply market, as well as in organising the supply to terminals, and understanding the needs of market participants. This allows us to operate as a partner in supply by aggregating the needs of market participants, who would find it difficult to secure themselves to competitive supply conditions on their own,” said Dominykas Tuckus, Director of Production and Services at Lietuvos Energija, and Chairman of boards of LITGAS and Lietuvos Duju Tiekimas.
According to him, such way of optimising the supply provides an opportunity to offer LNG to clients at a more favorable price than they would get by purchasing it on their own, and to LITGAS and Lietuvos Duju Tiekimas – to secure a competitive edge in the Baltic onshore LNG supply market, and even successfully compete in the home markets of other terminals and liquefaction plants. Transportation by LNG trucks will commence in late December and will last until March next year. This will be the second time LNG is delivered by land from the small-scale LNG terminal of Klaipeda.
In October, LITGAS and Lietuvos Duju Tiekimas have also jointly implemented the first transaction of supplying LNG by land, which resulted in the provision of several hundred cubic meters of LNG to the Polish company Duon.
The latest deal will also increase the number of LNG reload deals from “Independence” to small-scale LNG carriers to six. All of said transactions were implemented this year by LITGAS and Lietuvos Duju Tiekimas, both of which belong to the Lietuvos Energija group.