Norway's Equinor books capacity at Lithuanian LNG import terminal: operator

Norway's state-controlled Equinor was among the companies that have booked capacity at Lithuania's LNG import terminal for the upcoming gas year, the operator of the terminal, Klaipedos Nafta, said June 7.

A total of 8.9 TWh (0.75 Bcm) of capacity was booked at the terminal for Gas Year 21 (Oct. 1, 2021-Sept. 30, 2022), Klaipedos Nafta said in a statement.

The capacity booked was higher than that booked in the same process for Gas Year 20, when 8.4 TWh was booked.

"During this capacity allocation procedure, the largest volume of capacity in the entire history of the LNG terminal was ordered," Klaipedos Nafta's chief sales officer Mindaugas Navikas said in a statement.

"Not only existing customers, but also Equinor, have decided in advance to use the services and benefits of the LNG terminal," Navikas said.

"Our goals of increasing the competitiveness of the LNG terminal, strengthening cooperation with existing and potential customers, and offering flexible solutions are now bearing fruits and attracting new strategic partners."

A total of 44.6 TWh was offered in the capacity booking procedure, which began in April and closed in late May, meaning around 20% of the terminal's capacity has been booked.

But unallocated capacity at the terminal can be bought throughout the gas year -- last year an additional 12.3 TWh was booked during the year.

Wider market

Equinor already supplies LNG to Lithuania under a long-term arrangement with state importer Ignitis (formerly Lietuvos Energija).

However, Equinor is now looking to market its own supplied LNG in the Baltic region with the capacity booking.

Klaipedos Nafta said terminal users that book capacity can target Lithuania's own demand for gas and also supply gas to Latvia, Estonia and Finland.

From 2022, gas can also be supplied from Lithuania to Poland with the startup of a new interconnector between the two countries.

"While planning their activities, customers also take into account the additional market potential that will open up in 2022," Klaipedos Nafta said.

During the current gas year that began Oct. 1, 2020, there have been 49 LNG cargoes delivered to the terminal. "Another 11 LNG carriers are expected by the end of the gas year," it said.

Hammerfest LNG fire

Equinor usually supplies LNG to Lithuania from its Hammerfest LNG plant in Norway, but since September last year the facility has been closed following a fire.

The plant will not re-open until March 2022 at the earliest, meaning Equinor is having to meet its contractual obligations to Lithuania by sourcing LNG from other plants.

Supplies in Q4 2020 and Q1 2021 were all from the US.

Lithuania began LNG imports in 2014 via its dedicated floating import terminal, the Independence, giving the country an alternative to Russian pipeline gas imports for the first time.

Gas from the terminal can also be sent to neighboring countries in the Baltic region and since the start of 2020 also to Finland via the newly commissioned Balticconnector.

LNG imports into Lithuania were slow in the first years of operation, with the vast majority of cargoes coming from Norway, but supplies saw a big jump in 2019 and 2020 as spot LNG prices fell, leading to more spot cargoes from the US.

According to data from S&P Global Platts Analytics, a total of 1.8 Bcm of regasified LNG was imported into Lithuania in 2020, flat on the year.