Lithuania’s Achema seeks short-term LNG supply
Private fertilizer company and Lithuania’s largest gas consumer Achema has issued a short-term tender
seeking up to 21 LNG cargoes over three years, traders in Asia said.
Achema had requested for offers to be linked to either the UK’s NBP or the Netherlands’ TTF gas hubs
plus a constant, traders familiar with the tender said. Offers were due on 16 May, with the validity
period ending on 20 May. The tender was issued in the previous week.
However, another trader said Achema plans to shortlist two sellers from the pool of participants and
award the tender by end-September this year instead. This could not be confirmed with the buyer
The independent buyer is expected to receive around seven LNG deliveries at the Klaipeda Nafta LNG
terminal every year through the tender. The Klaipeda Nafta terminal is operated by state-owned LITGAS.
First delivery is scheduled to start from January 2017 to December 2019, with each cargo size specified
between 120,000 and 150,000 cubic metres (cbm), traders said. Total delivered LNG volume is
estimated at around 20 trillion Btu (TBtu) by end of the contract.
While Achema is flexible on the supply sources of the LNG, it has specified its preference for lean
volumes. The tender, if awarded, would be Achema’s second LNG supply deal this year. The buyer
agreed an NBP-linked deal with Norway’s state-owned gas producer Statoil in January 2016.
The fertilizer company is estimated to use up to 1.3 billion cubic metres of natural gas annually, which is
half of Lithuania’s entire domestic consumption.
The country consumed 2.6bcm of gas in 2015, with LNG imports taking just 1.5-2.0% of the total volume,
according to estimates from LITGAS.
Lithuania was the first country in the Baltics to start importing LNG.
It received seven LNG cargoes as of May this year, compared with the six imported over the whole of
2015, ICIS shipping analytics platform LNG Edge showed.