Natural gas supply and trading company
UAB Litgas, part of
Lietuvos Energija energy company group, says it plans to enter a new field of activity - small-scale liquified natural gas (LNG) supply and bunkering - with Norwegian oil and gas company
Statoil.
According to Litgas, it is currently "analyzing cooperation opportunities" with Statoil and that both parties plan to agree on the form of cooperation within the second quarter this year.
In a statement,
Dominykas Tuckus, CEO of LITGAS, said: "The Klaipeda LNG terminal is the only LNG terminal of such size in the Baltic Sea capable to reload LNG to smaller LNG bunkering vessels, such as bunkering ferries, containerships and other LNG propelled vessels, as well as to supply gas to industrial customers in smaller quantities. As new regulations for sulphur emissions came in to force, ship owners are increasingly looking to LNG as a cleaner fuel. The Klaipeda LNG terminal is closer to our potential clients than other terminals with similar capabilities. We have a competitive advantage from that perspective."
According to Tuckus, the company has already started discussions with potential clients and is seeking to conclude preliminary agreements.
"The demand for LNG in the Baltic region is increasing and both companies believe that this market will be interesting in the future. Having already put in place a value chain with access to self-produced LNG, ship transport capacity and access to the Klaipeda terminal, Statoil and Litgas believe that a cooperation between both companies should bring synergies that will benefit the potential cooperation between the two companies on small scale LNG distribution in the region," Litgas said.
The opportunity to cooperate in small-scale LNG supply and bunkering areas was included in
the 5-year Klaipeda LNG terminal supply contract signed between Litgas and Statoil in August 2014.
