Lithuania Eyes Norwegian Gas, Hopes for Gazprom Discount

An expected LNG deal between Lithuania’s fertilizer manufacturer Achema, the Baltics’ largest industrial gas consumer, and Norway’s Statoil may lower the price of gas from Russia’s Gazprom, experts believe.

If Achema signs the contract, Lithuania will buy about half the required annual gas volume, nearly 1bn m³, from Norway, and the rest from Gazprom.

Former Lithuanian energy minister Jaroslav Neverovic claims that an LNG supply contract between Achema and Statoil would establish a certain price ceiling for the Russian gas.

“As far as Gazprom is concerned, I see pluses. They – Achema and Statoil – will establish a certain ceiling for their main contract. If it were possible to find good prices of gas, in particular in summer, that would also send a certain strong signal as regards the price in the pipeline and would strengthen the negotiating position. I see a great many of pluses in what they’re doing, that’s very wise,” he told BNS, a Lithuanian news agency.

Meanwhile, Vidmantas Jankauskas, a Lithuanian energy expert, told NGE that this kind of deal might affect the Gazprom price up or down, but he believes it will hardly shake up the market as gas consumption in Lithuania is down. In addition to Achema, Statoil also supplies gas to Lithuania’s state-owned gas trade company Litgas.