Litgas trade agreements open up LNG market in Lithuania

Litgas, the supplier and trader of LNG, has signed general non-binding LNG master trade agreements (MTAs) with seven global LNG suppliers.

The signing of these agreements has opened up the opportunity to offer LNG to the Lithuanian market from companies that, if combined, would supply half of the world’s LNG.

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“Signing agreements with such suppliers gives us an enormous choice when it comes to buying liquefied natural gas in the global spot market quickly and efficiently. We will be able to give a dynamic response to changes in regional and international markets, use of the opportunity to buy LNG when the market price is competitive, become LNG trader on the global arena and offer natural gas to the Lithuanian market,” said Dominykas Tuckus, General Manager of UAB LITGAS.

Litgas will also be able to offer alternative pricing, which is linked to the global LNG markets. The company can begin supplying LNG as soon as the Klaipeda LNG terminal starts operation.

LNG market

By entering into these MTAs, Litgas has established relationships with potential suppliers and will be able to choose from their specific offers to buy and sell LNG. Individual contracts will be signed for each procurement providing specific quantities and price of gas as well as delivery deadlines.

Under these MTAs Litgas will buy an LNG commissioning cargo for testing Klaipeda LNG terminal. The cargo is expected to reach Klaipeda at the end of October.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09072014/litgas_opens_up_lng_market_in_lithuania_939/