WSJ: Gas Terminal Plans Helped Lithuania Negotiate Lower Price From Gazprom

Lithuania’s plan to dock a floating liquefied natural gas terminal on the Baltic coast later this year played an important role in negotiating lower prices from Russian gas supplier OAO Gazprom, according to the nation’s energy minister.

The Baltic nation is currently dependent on Gazprom for 100% of its gas, and Lithuanians have been paying 15% higher prices than the European average for gas. Concerns about price and energy security prompted Lithuania to lease a Norwegian-built ship — dubbed ‘Independence’ — that will allow it to process deliveries of liquefied natural gas from non-Russian sources and deliver it to Lithuanian customers at potentially lower prices.

The Independence recently left the South Korean shipyard where it was built and is expected to begin operating at the Klaipeda seaport in December.

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Source: The Wall Street Journal, 2014

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