Lithuania’s Dujos Negotiates Gas Supply Extension with Gazprom

Lithuania’s Lietuvos Dujos is negotiating with OAO Gazprom its gas contract expiring in 2015, Dujos Director Viktoras Valentukevicius said on Wednesday.

“We are in negotiations about extending the contract while changing some parameters,” Valentukevicius told reporters in Vilnius, referring to gas prices and amounts.

Lithuania is heavily dependent on Russia and its gas supplier Gazprom, which exported 3.3 bcm to the Baltic country last year. The two countries have long-term agreements up until 2015 and Gazprom owns 37% of Dujos.

“It would be for a period sufficient for us to assess changes and risks in the market, I think at least five years,” said Valentukevicius.

Earlier this year, Lithuanian President Dalia Grybauskaite and Norwegian Prime Minister Jens Stoltenberg met to speak about Norway’s possible role in helping the Baltic country to decrease dependency on Russia. Some months later, Lithuanian Minister of Energy Jaroslav Neverovich said on July 10 that he has no doubt that the contract granting US energy major Chevron the right to start prospecting for shale gas will be signed this year. 

At the same time, Lithuania is building a liquefied natural gas (LNG) terminal on the Baltic Sea, while fostering relations with neighbouring Poland. All three Baltic states - Lithuania, Latvia and Estonia - would have an alternative for natural gas supplies when the LNG terminal being constructed in Klaipeda begins operations next year.

Lithuania just assumed the presidency of the European Council, for a six-month stint to the end of the year.