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April 13th, 2012 5:05am Posted In:

Lithuania Seeks LNG Supply from Statoil

(Source: Statoil)
(Source: Statoil)

Lithuanian Energy Minister Arvydas Sekmokas has met with Norwegian major Statoil to discuss the possibility of Statoil supplying the country's planned LNG terminal with liquefied natural gas.

If an agreement was reached, the resource would be transferred from the Snohvit LNG terminal, from where Statoil already supplies ten countries worldwide. 

A statement from the Ministry said that the close proximity of the Snohvit terminal made Statoil an attractive prospect for the supply of LNG to Lithuanian state-run gas company Klapeidos Nafta given that it would take just five days for the gas to reach the Lithuanian terminal.

A deal with Statoil would also cut Lithuania's dependence on Russian supply, particularly that of Gazprom. In its statement today, the ministry pointed to Statoil's standing on the gas market, saying its market share was almost equal to that of Gazprom.

Statoil is just one of a number of options considered by the Lithuanian government. Previously the country has been rumoured to be seeking Azeri gas to fill its LNG need, which will be created by the building of a $500 million terminal. Work is expected to begin on that terminal by winning bidder Höegh LNG in the second half of 2014.

The deal signed between Höegh and Klapeidos Nafta reached a conclusion last month with the approval of the deal by Klapeidos Nafta's shareholders.