Lithuania Signs Contract with Statoil, Applies for EU Funds for Interconnection with Poland
Lithuania is playing its cards to increase energy security, applying for EU support for an interconnection project with Poland and singing its first LNG contract with Norway’s Statoil.
Baltic countries are completely reliant on Russian gas and are trying to progress with new plans to minimise the impact of an eventual gas cut off.
‘On 19 August 2014, the Polish and Lithuanian natural gas transmission systems operators GAZ-SYSTEM S.A. and AB Amber Grid submitted joint applications to the Innovation & Networks Executive Agency (INEA) for the co-financing of the project Gas Interconnection Poland – Lithuania (GIPL) from Connecting Europe Facility (CEF),’ reads a note published by Lithuania’s Ministry of Energy on Thursday.
The two companies submitted an application to receive EU financial support for planning and design, and a second to receive funds for construction activities.
Following the provisions of the legal acts for CEF, the maximum amount for co-funding is 50% for planning stages and 75% for construction works.
‘The estimated value of the GIPL project amounts to EUR 558 million, including EUR 422 million in the territory of Poland, and EUR 136 million in the territory of Lithuania.’
Vilnius also signed its first contract with Statoil for the supply of liquefied natural gas. This will enable the country to break Gazprom’s monopoly.
‘This contract will help to ensure continuous operation of the terminal and will establish a new natural gas pricing policy linked to the natural gas price movements on the international markets. The contract also covers possibilities of LNG reloading – a new commercial activity in the Baltic Sea region,’ reads a note released by Litgas on Thursday.
Litgas, which is the the gas trading arm of Lietuvos Energija, signed the contract that will bring 540 million cubic meters of gas to Klaipėda LNG terminal starting in 2015.
“This strategic contract will help to ensure the availability of an alternative natural gas import source which will enable us and other Lithuanian companies to procure natural gas on international markets from various suppliers at any time,” says Dominykas Tučkus, general manager of Litgas.
According to the company, the price of LNG supplied to Lithuania will be linked to the value of the NBP index.
In July, the country approved the National execution plan to trigger investments in electricity and natural gas projects, confirming its determination to find a way out of Gazprom’s monopoly.