“I think that Lietuvos Dujos should try to adjust to the political trends on the market and to the existing European Union’s legislation, which states that there should be real alternatives and diversity of suppliers on the market. What we are building [the LNG terminal], it’s part of infrastructure, and investments in infrastructure are always included in the tariff,” the news portal delfi.lt quoted Arvydas Sekmokas as saying at a seminar on LNG business opportunities on Thursday.
He referred to dissatisfaction expressed by Joachim Hockertz, Lietuvos Dujos deputy CEO, over a new methodology, which has recently been approved by the National Control Commission for Prices and Energy and which allows to include a premium for the construction of the liquefied natural gas terminal (LNG) in the natural gas price.
“Starting from January 2013, all consumers will be able to choose their supplier freely at the end of each year. It means that there are idiotic rules for those willing to enter the market. The market is absolutely free. The consumers will have to pay for this excellent commercial project starting from next January already. How is it possible to explain?” Hockertz said.
Meanwhile, Sekmokas noted that Lithuania’s consumers paid 408 euros per 1,000 cubic meters of natural gas, whereas in other markets the price of gas could be as low as 270 euros. The price of gas at the Nord Pool Spot reached 315 euros.
“What is the reason for these huge price disparities? The answer is very simple – we have only one supplier... We see monopolistic rules and are getting ready to change them” the minister said.
The National Control Commission for Prices and Energy decided at the end of September to include the compensation of costs of the LNG terminal, which is planned to be built in the port of Klaipėda, into the methodology used for the calculation of natural gas transmission and distribution prices.
This measure will provide funds for full or partial compensation of costs related with the construction of the LNG terminal, its infrastructure and the link between the facility and the natural gas grid.
It is not yet clear when the terminal’s costs will be included in the gas transmission tariff. A respective decision will be taken at a later date.
Lithuania expects to have the LNG terminal operational by the end of 2014. About a billion cubic meters of gas is expected to be pumped via the facility in its first year of operation. In the future, its annual capacity would be 2 to 3 billion cubic meters.