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Lithuania purchases second US spot LNG cargo

12 Jul 2017 12:46 (+01:00 GMT)
Lithuania purchases second US spot LNG cargo

London, 12 July (Argus) — Lithuanian Lietuvos Energija subsidiary Lietuvos Duju Tiekimas (LDT) has purchased its second US spot LNG cargo.

The cargo was bought from Sabine Pass train two offtaker Spanish utility Gas Natural Fenosa and will be delivered in mid-September. The cargo will be the fourth LNG delivery to LDT this year. Gas Natural Fenosa will be the fourth supplier of LNG to Lithuania, following Norway's state-controlled Statoil, US firm Koch Supply and Trading and US LNG producer Cheniere Energy.

"We observe a keen interest in the market for additional spot deliveries this season," terminal operator Klaipedos Nafta director Tadas Matulionis told Argus.

The Argus US Gulf Coast fob price for a September-loading cargo was $4.65/mn Btu yesterday. Shipping costs to northwest Europe were at $0.44/mn Btu, which equates to a delivered price of around $5.09/mn Btu, according to Argus calculations.

LNG traders have been enquiring about taking cargoes to Lithuania this summer for storage in Latvia, after the Latvian gas market was liberalised on 3 April. Traders were seeking to cash in on the summer-winter spread by storing gas in the summer and selling it in the winter, Matulionis said in May.

LDT's first US spot cargo purchase was bought from Cheniere Energy and will be delivered in the second half of August. LDT plans to store part of the 150,000m³ LNG cargo in Latvia's 2.3bn m³ Incukalns storage facility. The storage facility was at risk of closure or being sold earlier this year if it could not make a profit in Latvia's newly liberalised market.