Liquefied natural gas from the United States could reach Lithuania by late 2015, when the US is scheduled to begin gas exports, said US Ambassador to Lithuania Deborah McCarthy.

Currently, US companies must seek government permits to export gas to Lithuania and other countries that do not have free trade agreements with the US.

Once these permits are issued, the diplomat emphasized that negotiations will be economically competitive because US gas is in high demand worldwide.
So far, gas export permits have been issued to six companies, with the first of them planning to finish a gas export terminal in late 2015. Lithuania plans to launch an imports terminal in the port city of Klaipėda by the end of 2014.

“Should a commercial contract be negotiated, there is – I shouldn’t say a disconnect – but it’s off by a year, if not more,” the ambassador told BNS.

“There is also a huge demand also for our LNG from very, very, very large markets, so there is obviously competition going forward,” McCarthy added.

Asia is particularly interested in US gas, as LNG prices in Asia are than in Europe.

Lithuania’s President Dalia Grybauskaitė said at a meeting with US Vice President Joe Biden in Vilnius last week that Lithuania would like to import LNG gas from the US.

Lithuania also expects the US Congress to lift gas imports restrictions for NATO countries. Some US politicians say the decision should be accelerated in response to the Russian aggression in Ukraine, as US gas could help decrease Europe’s dependence on Russian gas.

Lithuanian Energy Minister Jaroslav Neverovic will visit the US Senate later this week to discuss the matter.

Russia’s Gazprom is currently the sole gas supplier to Lithuania, but the country in talks with three potential LNG suppliers for a five-year gas supply contract.

The selected company must able to supply a minimum operating volume of 540 million cubic meters to the Klaipėda terminal after it goes live in 2015.

According to earlier reports, Lithuania is also talking with US energy company Cheniere, which has a pending exports permit application with the US Energy Department.

Source: http://www.lithuaniatribune.com/65623/us-ambassador-us-gas-will-not-reach-lithuanian-lng-terminal-before-late-2015-201465623/