Lithuania's state-owned gas trader Lietuvos Duju Tiekimas (LDT) said June 26 it had signed a deal to buy LNG directly from the U.S. for the first time and expects to receive a delivery in the second half of August.
The deal is with a unit of Cheniere Energy Inc. (NYSE MKT: LNG) and is part Lithuania's efforts to diversify its gas suppliers and reduce its reliance on Russia's Gazprom.
LDT, part of state-owned energy group Lietuvos Energija, signed a deal last year with Koch Supply & Trading for LNG supplies throughout 2017.
Cheniere Energy was expected to supply LNG from a U.S. field, an LDT spokesman told Reuters. "It will be the first time Lithuania imports gas from the U.S.," he said.
"We opted for delivery from Cheniere after evaluating several offers for LNG," the spokesman said.
The LNG terminal at the Klaipeda port broke Russia's Gazprom gas supply monopoly in the Baltic States when it came online in 2014 and now provides Lithuania with roughly half of its gas.
Gazprom supplies the rest, but can no longer charge monopoly prices.
State-run Polish gas firm PGNiG received its first U.S. spot delivery of LNG from Cheniere Energy this month.
Poland is hoping a visit from U.S. President Donald Trump next month will pave the way for more LNG deals with U.S. producers.
Lithuania will store the LNG gas at its Incukalns underground gas storage, LDT said.
Litgas, also owned by Lietuvos Energija, and Lithuanian fertilizer producer Achema import LNG through the terminal from Norway's Statoil ASA (NYSE: STO).
Recommended Reading
EQT CEO: Biden's LNG Pause Mirrors Midstream ‘Playbook’ of Delay, Doubt
2024-02-06 - At a Congressional hearing, EQT CEO Toby Rice blasted the Biden administration and said the same tactics used to stifle pipeline construction—by introducing delays and uncertainty—appear to be behind President Joe Biden’s pause on LNG terminal permitting.
Oscars Season? Meet Guidance Season … and the Winner is?
2024-01-18 - Like movies under the Marvel and “Star Wars” banners—that have recently bombed—growth stocks are continuing a good run, but the appeal of the niche midstream sector could take center stage in 2024.
Venture Global Acquires Nine LNG-powered Vessels
2024-03-18 - Venture Global plans to deliver the vessels, which are currently under construction in South Korea, starting later this year.
Apollo Buys Out New Fortress Energy’s 20% Stake in LNG Firm Energos
2024-02-15 - New Fortress Energy will sell its 20% stake in Energos Infrastructure, created by the company and Apollo, but maintain charters with LNG vessels.
Subal: Pockets of Growth Balance Fears of Slowdown
2024-01-11 - U.S. midstream and energy infrastructure has a mixed outlook for 2024, with a possible loss in demand and stronger focus on renewables offset by solid oil prices and a healthy midstream industry with pockets of growth.