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International Internet Magazine. Baltic States news & analytics Friday, 26.04.2024, 15:06

U.S. LNG importing Lietuvos Dujų Tiekimas will help Putnu Fabrika Kekava to cut energy costs

BC, Vilnius/Riga, 04.10.2017.Print version
The natural gas supply and trading company Lietuvos Dujų Tiekimas, part of the state controlled energy company group Lietuvos Energija, has won the international tender for the supply of natural gas announced by AS Putnu Fabrika Kekava, the largest poultry company in Latvia. Putnu Fabrika Kekava, which is controlled by Linas Agro Group, became one of the first companies in Latvia to find an alternative to Russian gas, informed BC Head of Communications of Lietuvos Dujų Tiekimas Paulius Jakutavičius.

The proposal of Lietuvos Dujų Tiekimas will allow AS Putnu Fabrika Kekava to save about EUR 200,000 on energy expenses.

 

Lietuvos Dujų Tiekimas was the first company in the Baltic countries and one of the first in the Eastern Europe to import liquefied natural gas (LNG) from the USA via Klaipėda LNG Terminal this autumn. Mantas Mikalajūnas, the General Manager of Lietuvos Dujų Tiekimas, says that the expansion of the supplier circle and the diversification of its gas purchases allow company to compete successfully in the market.

 

“Our goal is to create value for our clients: contribute to their competitiveness growth by reducing their energy costs. This is why we are always seek for the most favourable natural gas offers in the international market. We are very pleased that after purchasing LNG from the U.S. we were able to offer AS Putnu Fabrika Kekava the best terms and to help reduce their production costs. This is yet another proof that only open market and real competition can ensure best gas prices”, says Mantas Mikalajūnas, the General Manager of Lietuvos Dujų Tiekimas.

 

For the last two years, the Latvian company has been also organising international tenders for the procurement of electricity.

 

“The decision to announce an international tender was primarily encouraged by economic motives: energy costs represents approximately 7 percent of all our production expenses and the annual gas demand amounts to 7 million cubic metres”, estimates Andrius Pranckevičius, the Chairman of the Board of AS Putnu Fabrika Kekava and the Deputy General Manager of AB Linas Agro Group.

 

According to him, the competition in poultry business is huge and successful business development is only possible by reducing cost while ensuring that it does not influence the quality of production.






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