Overview

Lithuania is the largest of the Baltic states and consumes the most gas of the three. It is scheduled to bring a new floating LNG terminal onstream later this year as part of its efforts to diversify its sources of imports away from Russia's Gazprom.

The 'Independence' FSRU was built and tested by Hyundai Heavy Industries in South Korea and will dock on the approach to the Baltic Sea at the port of Klaipeda. The unit will have a storage capacity of 170,000 cubic metres.

Majority state-owned oil terminal operator Klaipedos Nafta has been mandated by the government to rent the vessel under a 10-year lease agreement with Norway's Höegh LNG worth €430 million ($577 million).

The government in Vilnius has made the project a highly politicised venture. Analysts believe the arrival of the FRSU will give Lithuania leverage in contract discussions with Gazprom when the first alternative supplies become available.

The EU has also supported the project. The Luxembourg-based European Investment Bank lent €87 million ($117 million) towards the FSRU’s development in 2013. The Nordic Investment Bank also helped.

National gas trader Litgas reported in July that it had signed master trade agreements with seven potential suppliers. A commissioning cargo is scheduled for October, the company said, although it did not name any potential shippers.

Reports suggest a five-year deal with Norway's Statoil could start in 2015, with around 540 million cubic metres of gas delivered per year. Lithuania consumed 2.7 billion cubic metres in 2013, more than 20% less than 2012 consumption rates.

Page updated: 13/08/2014