Lithuanian gas prices not to increase despite LNG terminal costs

November 12, 2014 11:29 am 

VILNIUS, Nov. 12 — Lithuania's Prime Minister Algirdas Butkevicius has denied on Tuesday the possibility that heating prices in Lithuania would increase because of additional costs from liquefied natural gas (LNG) terminal operations.

"The terminal, just any infrastructure created, requires return on capital, and we have clear estimation that the cost of the terminal accounts for about 100 litas (about 35.7 U.S. dollars) for every 1,000 cubic meters of natural gas," said Butkevicius in an interview with Lithuanian national radio station LRT.

"But I want to emphasize that despite the additional costs the price of the gas next year will definitely not increase," he added.

Rokas Masiulis, new Energy Minister of Lithuania and the former chief executive of Klaipedos Nafta, the developer of the LNG Project, has recently said that the 20 percent gas price discount given to Lithuania by Gazprom, has already helped to cover the costs of the LNG terminal project to Lithuanian consumers.

The LNG terminal in Klaipeda is scheduled to start its operations in early December with natural gas from the terminal to be provided to regulative consumers as of 1 January 2015.

The price of LNG supplied to Lithuania will be linked to the value of Britain's natural gas exchange NBP index. (1 U.S. dollar = 2.8 litas) (PNA/Xinhua)

FPV/EBP

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