Lithuania To Truck LNG to Poland

Lithuania‘s Litgas, the gas trade arm of state energy holding Lietuvos Energija (Lithuanian Energy), will begin LNG sales to Poland's electricity and gas supply company Duon late this month. The gas will be hauled there from Lithuanian seaport Klaipeda‘s new ground LNG distribution station by trucks.

"The deal with Duon is important, as this delivery marks the start of our new commercial operations – LNG supplies by land, which will help diversify our operations," Litgas told NGW. The contract will allow Duon supply gas to customers not connected to the gas grid. He said though it was premature to speak about the company‘s plans regarding LNG transportation by trucks. "That segment of the LNG market is still in its very early phase. In fact, it is being born,“ he said. He did not comment on the price of the new service, saying that the distance between the LNG distribution station and end consumers will be one of the key elements of the cost.

Litgas is expected to sell a few hundred thousand cubic metres of gas to the Polish company, and Duon's decision surprised some energy experts. "That it will buy the gas from Klaipeda instead of Swinoujscie – where the 5bn m³/yr Polish LNG terminal sits – can only be explained by the price. It must be cheaper in Klaipeda,“ former energy minister turned consultant Arvydas Sekmokas told NGW.

Duon did not answer NGW's requests for information. Duon operates three LNG stations close to Lithuania's borders, in Goldap, Suwalki and Augustow.  According to the Lithuanian analyst, truck-transported LNG service will carve its niche in the gas market, "especially domestically and particularly in municipalities with low biomass use. Also we have good prospects in northern Poland, where there are no conventional gas mains,“ he said. "Despite the popularity of biomass among local heat suppliers, LNG has advantage when it comes to the convenience of its use, the speed at which the gas-firing installations can be launched and so on,” he added. Lithuanian terminal operator Klaipedos Nafta said the LNG distribution station would be inaugurated on October 27.

Linas Agro Group's poultry farms in Latvia and Latvia's biggest gas consumer, Latvenergo, are among the ten Latvia-based buyers of Lithuanian LNG, the seller in those cases being Lietuvos duju tiekimas (LDT), part of Lietuvos Energija.

Linas Jegelivicius