Energy, Gas, Legislation, Lithuania, USA

Photo: Cheniere

Cheniere Energy will open the first LNG export terminal in the US in over 40 years later this year, first LNG expected to arrive in Lithuania as early as 2016, the company said in a statement.

"This agreement entered into with Cheniere is very important – the company is building the first US natural gas liquefaction and export terminal which will be operational late 2015, and will provide us access to the prolific US natural gas market," General Manager of LITGAS Dominykas Tuckus said.

"We can begin receiving cargoes as early as 2016 to match demand," he added.

The US shale gas revolution in recent years has transformed the nation from one of a natural gas importer to one now able to export and provide LNG supply to global markets.

It is estimated that LNG projects already approved by US authorities will increase global supply by over 30 billion cubic meters per year by 2018 – it compares to about 10% of current global LNG market. By comparison, the Baltic States consumes annually about 4 billion cubic meters.

This agreement provides LITGAS with supply and pricing diversity from a reliable counterparty.

LITGAS has 16 non-binding master trade agreements with companies supplying approximately half of world's LNG and also has possibilities to buy natural gas from other Lithuanian importers.