Lithuania pushes on gas pipeline

Release Date: 2010-08-04

Lithuania is pushing ahead on its plans for an ‘Amber Stream pipeline, after Gazprom had earlier rejected the idea, looking to use Qatari LNG accessed through a Polish terminal.

In June 2009, the QatarGas Company signed a supply contract for 1 million tones of LNG through a Polish Terminal which is to be built by 2015. Several agreements are still to be signed before construction starts.

Earlier Gazprom has rejected the Amber gas pipeline through the Baltic countries, as well as the construction of the second branch of the Yamal-Europe pipeline through Belarus and Poland, in favor Nord Stream and the Baltic Sea route.

Polish gas demand, according to forecasts, will increase by 2015 to 18 billion cubic meters a year. But with local production of more than 4 billion cubic meters a year, along with supply through the proposed terminal from Qatar, and additional supplies from Germany, the share of Russian gas in the total balance will be reduced. Proponents of the new system believe better prices can be gained than through Russia.

The operators of gas transmission systems in Poland and Lithuania signed a memorandum on construction of the Amber Pipeline on August 2. The memorandum, which will be submitted to the European Commission in the first quarter of 2011, provides feasibility analysis on its construction.

Polish Prime Minister, Donald Tusk, says that there are still issues to be addressed over a long term gas supply agreement with Russia.

“We will try to optimize the solution to make the Russian gas more affordable and keep the flexibility of our contract relations.”

Source: Russia Today

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