Lithuania to peg liquefied natural gas prices to benchmark in London

GMT 14:14 2014 Friday ,10 October

Arab Today, arab today Lithuania to peg  liquefied natural gas prices to benchmark in London

four liquefied natural gas (LNG) tanks
Vilnius - XINHUA

 Rokas Masiulis, new Minister of Energy of Lithuania, revealed on Thursday that gas prices from new liquefied natural gas (LNG) terminal in Klaipeda will depend on international prices.
According to Masiulis, former CEO of Klaipedos nafta, the developer of the LNG terminal project, LNG prices from the new terminal will be determined by "transparent and clear British benchmark and not by oil".
"If benchmark plunges, our gas price decreases as well. But it will depend on global oil prices," said Masiulis in an interview with radio station Ziniu radijas.
Lithuania, which is fully dependent on natural gas supplies provided by Russia's Gazprom, pays the price pegged to oil prices.
The Minister says that Lithuania's agreement with energy company Statoil on gas supplies to LNG terminal has decreased the country's dependency on Russian gas pricing policy.
"The agreement with Statoil was based on pricing formula different from that we have with Russia's Gazprom," said Masiulis.
He predicted that in the near future gas prices will feel positive influence as more LNG terminals will be built in the region.
The new LNG terminal in Klaipeda is scheduled to start operation in early December. The Independence, the floating storage and regasification unit (FSRU) built for LNG terminal, is expected to arrive in Klaipeda seaport in October 27.

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