Lithuania commences gas talks with Gazprom; may purchase 500 mln cu m in 2016
VILNIUS. Nov 6 (Interfax) - Lithuanian gas importer Lietuvos duju tiekimas, part of the Lietuvos energija group, has begun talks with Gazprom on gas purchases in 2016, given that its long-term contract with the Russian gas giant expires at year-end.
Lithuania may buy as much as 500 million cubic meters of gas from Russia next year, commercial director Haroldas Nauseda said at a session of the parliamentary committee on economics.
No specific volumes are being discussed for the time being, although it is thought demand for Russian gas might total 500 mcm.
The actual amounts will depend on the industrial activity and the demand for bio-fuels.
Lithuanian gas consumption is projected to total about 2 billion cubic meters next year, of which the Achema fertilizer plant in Jonavos, which buys gas directly from Gazprom, will account for 1.2 bcm.
Statoil will supply about 300 mcm at a minimum in the form of LNG. In other words, Lietuvos duju tiekimas may import as much as 500 mcm. Moreover, Lithuania will carry over purchase of 300 mcm available under the current contract to next year.
But one lawmaker, Arturas Skardzius of the Social Democratic party, told the BNS that it will be difficult to agree purchase of such a small amount with Gazprom.
Nauseda said there is information that Gazprom will organize the first gas auction for the Baltic States in December, which is expected to serve as a certain signal for the market. If the price Gazprom offers is too high, Lithuania could buy gas from Latvia.
"It is interesting what price they show, what the terms are. This will be a little like what was in Germany a month ago. This will also be a certain signal. Of course, the situation in our region varies: the Estonian gas enterprise's contract also expires this year. Latvia has an agreement to 2030. These are also certain signals and opportunities to purchase gas from Latvia, if Gazprom decides to raise the price for us or apply some sort of absurd price," Nauseda said.
Lietuvos duju tiekimas' long-term gas supply contract with Gazprom expires at the end of 2015. Gazprom sold gas under the contract in 2013-2015 at a discount of 21%. For that reason, it is unclear what the price of gas will be next year.