Litgas, an LNG supplier and trader, which is a part of Lietuvos Energija Group, has signed general non-binding LNG master trade agreements (MTAs) with seven global LNG suppliers.
This has opened up the opportunity to offer liquefied gas to the Lithuanian market from companies that, if combined, would supply half of the world’s LNG, the company said in a statement.
“Signing agreements with such suppliers gives us an enormous choice when it comes to buying liquefied natural gas in the global spot market quickly and efficiently. We will be able to give a dynamic response to changes in regional and international markets, use of the opportunity to buy LNG when the market price is competitive, become LNG trader on the global arena and offer natural gas to the Lithuanian market,” said Dominykas Tučkus, General Manager of Litgas.
Litgas will also be able to offer alternative pricing which is linked to the global LNG markets.
The company can begin supplying LNG as soon as the Klaipėda LNG terminal starts operation.
MTAs provide a framework for settlements, deliveries, responsibility sharing, general confidentiality terms and other conditions so that there is no need to negotiate them every time LNG is purchased, making the buying process much shorter.
By entering into these agreements, Litgas establishes relationship with potential suppliers and will be able to choose from their specific offers to buy LNG and to sell LNG. Individual contracts will be signed for each procurement providing specific quantities and price of gas as well as delivery deadlines, the company said.
Under these MTAs Litgas will buy an LNG commissioning cargo for testing the Klaipėda LNG terminal. The cargo is expected to reach Klaipėda at the end of October, it added.
Press Release, July 9, 2014; Image: Hoegh LNG