Litgas , part of the Lithuanian state-controlled Lietuvos Energija energy company group, signed a master trade agreement to enable purchases of LNG from Cheniere Marketing, a unit of Cheniere Energy.
Cheniere Energy will open the first LNG export terminal in the U.S. in over 40 years later this year, with first LNG expected to arrive in Lithuania as early as 2016, Litgas said in a statement.
“This agreement entered into with Cheniere is very important, the company is building the first U.S. natural gas liquefaction and export terminal which will be operational late 2015, and will provide us access to the prolific U.S. natural gas market,” General Manager of Litgas Dominykas Tuckus said.
He added that the company can begin receiving cargoes from Cheniere’s Sabine Pass LNG export terminal as early as 2016 to match demand.
It is estimated that LNG projects already approved by U.S. authorities will increase global supply by over 30 billion cubic meters per year by 2018, it compares to about 10 percent of current global LNG market. By comparison, the Baltic States consumes annually about 4 billion cubic meters.
This agreement provides Litgas with supply and pricing diversity from a reliable counterparty, the company said.
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Image: Cheniere