Litgas Considers Baltic LNG Bunkering Business

Independence

By MarEx 2015-02-24 17:15:06

Lithuanian liquefied natural gas (LNG) importer Litgas and Norway's Statoil are considering setting up an LNG bunkering business in the Baltic region as regulations force vessels to switch to cleaner fuels, the Lithuanian company said.

The business, if launched, could involve additional LNG volumes on top of the 0.5 billion cubic meters (bcm) of gas per year Litgas has agreed to buy from Statoil for five-years.

"Litgas together with Statoil are analyzing cooperation opportunities and plan to agree on the form of cooperation within the second quarter this year," the Lithuanian importer said in a statement.

"We are speaking about additional LNG volumes on top of the already agreed 0.5 bcm per year... Maybe two additional LNG tankers," a spokesman for Litgas said.

The Klaipeda LNG terminal, which received the first commercial LNG cargo at the end of December, can store 170,000 cubic meters of super-cooled gas.

LNG demand for shipping in the Baltic region is going to increase due to stricter environmental regulations for sulfur content in the fuel, it added.

"Both companies believe that this market will be interesting in the future," Litgas said.

Litgas is 67 percent owned by Lithuania's state-owned energy group Lietuvos Energija and 33 percent by Lithuanian oil terminal company Klaipedos Nafta.

Copyright Reuters 2015.