Lietuvos Dujų Tiekimas, a part of Lithuanian Lietuvos Energija group, signed a memorandum of understanding with Freeport LNG securing supplies from the facility under construction on Quintana Island, Texas.
“It is very important for us to secure gas supplies from alternative sources, and the Freeport LNG terminal will become one of the largest US LNG export terminals, therefore, we are expanding our range of potential LNG suppliers with this agreement,” Mantas Mikalajūnas , general manager of Lietuvos Dujų Tiekimas said.
Last year, Lietuvos Dujų Tiekimas imported two LNG cargoes from the USA with the first cargo arriving in August from Cheniere’s Sabine Pass LNG facility.
Lietuvos Dujų Tiekimas said that Freeport LNG plans to start production from its first liquefaction train by the end of this year, with two more LNG trains to follow in 2019.
The annual production capacity will reach some 15 million tons per year, with Lietuvos Dujų Tiekimas saying Lithuania consumes some 2 billion cubic meters of US-produced natural gas.
Currently, the Lithuanian gas supply and trading companies Lietuvos Dujų Tiekimas and LITGAS, both members of Lietuvos Energija group, have signed about 15 non-binding general trade agreements with global LNG suppliers.