Cheniere offers gas to Lithuania for a third less than Gazprom
VILNIUS. May 12 (Interfax) - Cheniere Energy, Inc of the United States, which has signed a protocol of intent with Lithuania's Klaipedos Nafta to supply liquefied gas, is prepared to sell this gas for a third less than Russia's Gazprom , Lithuanian Energy Minister Arvydas Sekmokas told the Lietuvos Rytas newspaper.
"The gas that the Americans are offering is a third cheaper than what we are receiving from Gazprom," he said.
Cheniere plans to liquefy and export shale gas, which will be transported to a planned LNG terminal at Klaipeda. "It should be mentioned that shale gas on the market in the U.S. has brought prices down. But we are looking at other possible suppliers, also," Sekmokas said.
Sekmokas said he was confident the Klaipeda LNG terminal would be connected to the trunk pipeline in three years.
The terminal's initial import capacity will be 1.5 million-2.2 million tonnes per year, but this could be increased in time.
Klaipedos Nafta and Cheniere have so far reached agreement on the terms for buying and supplying LNG, and a long-term supply contract might be signed if the talks are successful.
The government decided to build the LNG terminal last summer. Its proposed capacity of 3 billion cubic meters is enough to meet Lithuania's entire gas needs. Construction should begin in 2011 and the terminal should be built by 2014.