Corrected: Lithuania’s Achema seeks short-term LNG supply

Xieli Lee

16-May-2016

Correction: In the ICIS story headlined “Lithuania’s Achema seeks short-term LNG supply”, dated 16 May 2016, please read “The terminal is operated by Klaipedos Nafta.” in the fourth paragraph, instead of “… by state-owned LITGAS” and other clarifications throughout. A corrected story follows.

Private fertilizer company and Lithuania’s largest gas consumer Achema has issued a short-term tender seeking up to 21 LNG cargoes over three years, traders in Asia said.

Achema had requested for offers to be linked to either the UK’s NBP or the Netherlands’ TTF gas hubs plus a constant, traders familiar with the tender said. Offers were due on 16 May, with the validity period ending on 20 May. The tender was issued in the previous week.

However, another trader said Achema plans to shortlist two sellers from the pool of participants and award the tender by end-September this year instead. This could not be confirmed with the buyer immediately.

The independent buyer is expected to receive up to seven LNG deliveries at the Klaipeda Nafta LNG terminal every year through the tender. The terminal is operated by Klaipeda Nafta.

First delivery is scheduled to start from January 2017 to December 2019, with each cargo size specified between 120,000 and 150,000 cubic metres (cbm), traders said. Annual delivered LNG volume is estimated at around 20 trillion Btu (TBtu)/year.

While Achema is flexible on the supply sources of the LNG, it has specified its preference for lean volumes. The tender, if awarded, would be Achema’s second LNG supply deal this year. The buyer agreed an NBP-linked deal with Norway’s state-owned gas producer Statoil in January 2016.

The fertilizer company is estimated to use up to 1.3 billion cubic metres of natural gas annually, which is around half of Lithuania’s entire domestic consumption.

The country consumed around 2.5bcm of natural gas in 2015, with LNG imports taking around 17% of the total volume, according to a statement from trading company LITGAS on 17 May 2016.

Lithuania received seven LNG cargoes as of May this year, compared with the six imported over the whole of 2015, ICIS shipping analytics platform LNG Edge showed. xieli.lee@icis.com

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