“It would be unreasonable to stop buying gas from Gazprom and we shall ensure at least 25 percent. We see this as an element of talks [with Gazprom]. Our position in talks is to provide full guarantees on the transit of gas to Kaliningrad,” he told members of the parliamentary Economics Committee on Wednesday.
Once built, the LNG terminal and Gazprom could both stay on the market. “Gas would be supplied via the terminal and Gazprom would continue to supply gas and will have a possibility to compete,” Sekmokas said.
The Energy Ministry proposes to pass a bill obliging gas supply companies to buy one-fourth of their gas imports from Klaipėdos Nafta (Klaipėda Oil), the operator of the LNG terminal, and another one-fourth from Gazprom.
Such an obligation would be binding on Lietuvos Dujos (Lithuanian Gas), Dujotekana, Achema, Intergas, Kauno Termofikacijos Elektrinė (Kaunas combined heat-and-power plant), and Lietuvos Energija (Lithuanian Energy). It would come into effect if the parliament adopted the law on LNG terminal, which is being drafted now.
The suppliers could compete on the market for the remaining 50 percent share of gas market.
One-fourth of Lithuania’s market makes up some 700 million cubic meters of gas. Lithuania imports some 2.5-3 billion cubic meters of gas per year.
4 billion cubic meters capacity
Up to 4 billion cubic meters of gas per year could be imported through Lithuania’s planned liquefied natural gas (LNG) terminal in Klaipėda in future, Energy Minister Arvydas Sekmokas has said.
“It is more than Lithuania consumes. And it provides solid preconditions for this terminal to operate as a regional Baltic liquefied natural gas terminal,” Sekmokas told the members of parliamentary Economics Committee on Wednesday.
The terminal could pump 11 million cubic meters per day if Lietuvos Dujos (Lithuanian Gas) built a 700 mm gas pipeline between Klaipėda and Kuršėnai, Rokas Masiulis, CEO of Klaipėdos Nafta (Klaipėda Oil) said. “That would be the maximum capacity of the terminal and we would thus reach those 4 billion cubic meters of gas.”
Lithuania consumes some 2.5-3 billion cubic meters of gas per year.
According to Masiulis, the surplus could be pumped to Latvia’s Incukalns underground gas storage facility. “We are holding discussions with the Latvians now. There are certain technical restrictions. We may have to conclude a gas swap agreement with the Latvians,” he said.
Sekmokas noted that Lithuania could only invest in Incukalns after the implementation of the third energy package and the unbundling of Lietuvos Dujos’ activities. “Otherwise it would be an ill-founded decision.”
The tanker would be a floating terminal and could sail to other ports, Masiulis said. “Ours could sail to other ports ..., hence if there are any disruptions in the supply chain, the tanker will be able to sail and take gas itself,” he explained.
The tanker for the terminal was being manufactured by Korea’s Hyundai, Masiulis said adding that “only the Koreans ... are able to offer a good price and quality ratio”.