Energy, Gas, Gas Market , Latvia, USA

International Internet Magazine. Baltic States news & analytics Friday, 14.08.2020, 17:14

Perry in Vilnius: US LNG will become increasingly competitive

BC, Vilnius, 07.10.2019.Print version
US liquefied natural gas (LNG) is the right choice for Lithuania which is looking for a reliable supplier and energy partner, US Energy Secretary Rick Perry said in Vilnius on Monday, adding that American gas will become increasingly competitive, citing LETA/BNS.

"There is a price of freedom. (...) Is freedom worth a few more euros of gas? (...) And the question you have got to ask yourself: who do you want to buy gas from? A country who has a record of cutting that gas off from time to time to meet their political needs, or from the United States, that's going to be a loyal partner and ally," Perry said.

According to the US official, even if American gas is currently more expensive than Russian gas, the situation will change over time.

"So the argument that the Russians make that somehow their gas is cheaper, it's probably a short-lived brag. Even if that's the truth today – and I'm not sure that's the truth today – so, the point is: gas going forward, US gas is going to be competitive with anybody in the world", he said.

In the energy secretary's words, the supply of US gas has already helped bring down LNG prices in the world. 

"We are going to double the amount of gas available in the next 24 months with the potential of doubling it again in the next two or three years – so, we know what happens with that type of supply in the market place: continues to drive down the cost," he said.

Lithuanian Energy Minister Zygimantas Vaiciunas says the US is contributing to global market changes that are bringing and will continue to bring benefit to Lithuanian consumers.

"We are witnessing the process Secretary Perry spoke about, namely, increased US gas exports," Vaiciunas said.

"Three new LNG export terminals were launched in the US in 2019, which has boosted the global supply of LNG and led to a decline in prices. Increased US exports were among the reasons," he said. 

The minister expects LNG prices in the cold season to go down in the long run, too. 

"LNG is cheaper in the summer, but as we follow the situation we have with the Lithuanian terminal, we see that we are going to quite soon have a situation where natural gas will be more competitive than (Gazprom's) pipelined gas during the winter period, too," Vaiciunas said. 

"That's how things stand in the market. And, naturally, we are going to have almost more LNG than pipelined gas in the near term," he added.  

Vaiciunas told  last Friday that the possibility to import LNG from the US for a competitive price was important for Lithuania.

"Our goal is not to have gas for any price. We need to have it for a competitive price," he told. 

US gas has been twice delivered to the Klaipeda LNG terminal. 

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