Lithuania’s LITGAS Signs Non-binding MoU with Delfin for US LNG

After the recent visit of Lithuania’s Energy Minister Rokas Masiulis to the United States, LITGAS signed a non-binding Memorandum of Understanding with Delfin LNG for gas supplies from the first offshore floating liquefaction project in the US from 2019. 

“We are actively investigating the potential supplies from the U.S., signing MOU with one of the first floating natural gas liquefaction project developers marks a significant step towards further potential cooperation, which in the long run can contribute to the objective of diversification of gas supplies in Lithuania”, General Manager of LITGAS Dominykas Tuckus said. The signed memorandum of understanding is not binding in terms of selling or buying LNG. 

According to LITGAS, the first LNG export terminal in the United States is expected to start operation in the second half of 2015, and the Baltic country is intentioned to strengthen its ties with Washington in order to become a regional gas hub. 

‘Due to warmer than normal winter, the slowdown in economic growth in Asia, the Asian LNG prices dropped to record lows. Therefore it is expected that the LNG from Atlantic Basin will become uncompetitive in the Asian region and more LNG will be transported to Europe – this should increase the supply and push prices down’ the Lithuanian company commented. 

Meanwhile, the Lithuanian delegation continues its works in this direction.

‘The memorandum does not constitute an obligation to sell or purchase LNG. But it will provide a base for the development of cooperation with Delfin LNG. It is planned that the Delfin LNG facility to be built in a deep water port in Louisiana will start operating in 2019’ the Ministry of Energy commented in a separate press release, adding that LITGAS will soon sign another agreement with a second American company. 

Masilius also met with officials of Exxon Mobil, also presenting his country’s plan to support a LNG market, and shale exploration.