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News   »   Others   »   JetGas and Lithuanian LNG terminal operator Klaipedos Nafta concluded a preliminary contract

JetGas and Lithuanian LNG terminal operator Klaipedos Nafta concluded a preliminary contract

Lithuanian SC Klaipedos Nafta is projecting and this year will start building a liquefied natural gas (LNG) distribution station. JetGas, the only LNG supplier in Estonia, is interested to become a user of this infrastructure in order to supply LNG as an alternative fuel for the industries around the Baltic countries and to expand LNG regas stations’ network.
JetGas and SC Klaipedos Nafta signed a preliminary agreement for LNG distribution station capacity booking. JetGas is the first company with which the LNG station project developer Klaipedos Nafta has signed a contract for future services. JetGas hope to be able to start LNG cargo handling immediately after the distribution station construction is completed and operations begin – from the beginning of 2017.
JetGas is currently developing LNG regas stations’ network in Estonia. Company installed first station in Kuressaare town (island Saaremaa) in June 2014. JetGas’ 3 more stations are being constructed and commissioned during 2015 and 4 more during 2016. Its main customers are industrial companies which have a need for clean, easy-to-handle and highly-efficient primary energy. Regasified LNG is such a fuel that can deliver these benefits to the customers.
“JetGas foresees that due to the environmental concerns liquid fuels as an energy source will soon be ruled out by no- or low-carbon alternatives – renewables together with natural gas. Thanks to the liquefaction natural gas could now be transported and used at the places where there is no gas-grid available.  We see Klaipeda LNG terminal and its planned on-shore distribution station as a serious alternative for developing totally new supply routes for energy traders in the Baltics including JetGas among others.  JetGas believes that LNG supplies from Klaipeda LNG distribution station could create a new market for LNG and natural gas all over the region. That would allow industries and other energy-users to switch to more environmental-friendly as well as energy-efficient fuels”, - says Janek Parkman, JetGas Member of the Board.
“Estonia already imports gas from Lithuania via gas grid. This contract is just another example that Estonian business rationally and consistently works to exploit an existing LNG infrastructure in the region and sees potential for expanding small-scale LNG activities range. Other neighboring countries are also starting to take the same steps – in the near future we plan to sign a few more preliminary capacity booking contracts”, - adds Mantas Bartuška, SC Klaipedos Nafta CEO.