Lithuania in talks with Gazprom over new gas supplies -report

Latvijas Gaze AS

06/11/2015 11:03

VILNIUS, Nov 6 (Reuters) - Lithuania has started talks with 
Russian gas exporter Gazprom  GAZP.MM  on purchases for the next 
year as its long-term supply contract expires in December, 
Baltic news agency BNS reported. 
    Gazprom said on Monday it would hold an auction later this 
year for gas deliveries to the Baltic States in 
2016. ID:nR4N11N029  
    Lithuania's Lietuvos Duju Tiekimas (LDT) plans to import up 
to 500 million cubic metres (mcm) of pipeline gas next year, 
Haroldas Nauseda, head of LDT's commercial department, told the 
parliamentary economic affairs committee this week. 
    That would mean a drop of about 50 percent from 2014 levels, 
reflecting Lithuania's start of liquefied natural gas (LNG) 
imports and lower demand due to warmer weather and as biomass 
displaces some gas use. 
    If the offered price at the Gazprom auction is not 
acceptable, LDT could buy gas from neighbouring Latvia, which 
has a long-term supply contract with Gazprom which runs until 
2030, he said. 
    LDT also has about 300 mcm of gas left over under the 
expiring contract and could carry that over to next year, 
Nauseda said. 
    Imports of LNG from Norway are expected to total at least 
300 mcm in 2016, compared to 540 mcm planned for this year, LDT 
estimates show. 
    LNG importer Litgas, which has a five-year contract with 
Norway's Statoil  STL.OL , has said it might re-sell some 
cargoes on the international spot market as domestic demand 
falls.  ID:nL5N0XA2YY  
    Litgas and LDT, both a part of Lithuania state-owned energy 
group Lietuvos Energija, will be merged by the end of 
2015. ID:nL5N0XW3HA  
    LDT and Lietuvos Energija were not immediately available to 
comment. Litgas declined to comment. 
    Nauseda told lawmakers the country's gas demand was expected 
to fall to about 2 billion cubic metres (bcm) in 2016 from 2.6 
bcm in 2014. 
    Lithuania plans to start importing electricity from Sweden 
via a new subsea link in 2016, further reducing gas demand for 
power generation. 
    Private nitrogen fertiliser producer Achema is estimated to 
consume 1.2 bcm, more than half of Lithuania's total demand in 
2016. It buys gas from Gazprom directly.   
 
 (Reporting by Andrius Sytas, writing by Nerijus Adomaitis; 
editing by Jason Neely) 
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters 
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net)) 
 
Keywords: LITHUANIA GAZPROM/