VILNIUS - Lithuanian Energy Minister Arvydas Sekmokas said it would not be rational to stop buying gas from Russia's Gazprom after Lithuania has built an LNG terminal in Klaipeda by 2014.
"It would not be rational to stop buying Gazprom’s gas, and we should ensure the purchase of 25%. We see this as an element for negotiations [with Gazprom]. Our position at talks is to give all-round guarantees for gas transit to Kaliningrad," the minister said at a session of the Parliamentary Economics Committee.
Once the terminal has been built, both suppliers – the terminal and Gazprom – will be market participants. "Gas will be supplied via the terminal, Gazprom will continue to supply gas and will have the opportunity to compete," he said.
The Energy Ministry proposes to legislate for gas distribution companies to buy 25% of gas from Klaipedos Nafta, which is developing the LNG terminal project, and 25% from Gazprom, by pipeline. This will apply to Lietuvos Dujos, Dujotekana, Achema, Intergas, Kaunas Thermal Power Plant and Lietuvos Energija. The legislation will come into effect if the parliament passes the law on the LNG terminal, which is being drafted.
It is thought suppliers could compete over the other 50% of the market.
Lithuania imports 2.5 billion-3 billion cubic meters of gas per year so 25% of the gas market would be around 700 million cubic meters.
