Estonian energy company Eesti Gaas has signed a contract for the purchase of 2 TWh of liquefied natural gas (LNG) to cover the country’s heating needs this winter. The deal will cost the country approximately EUR 300 million, according to Estonian public media ERR.
The company has signed a contract with Norway’s energy group Equinor. Gas will be supplied to Lithuania’s Klaipeda LNG terminal in October and November.
This contract will help calm the market and clients, said Eesti Gaas chairman Margus Kaasik.
He added that Eesti Gaas will continue procuring more LNG for the country’s needs.
«Natural gas was, is and will remain one of the cleanest and most convenient fuels. Gas price will likely be high this winter,» said Kaasik.
«However, looking farther into the future, transition to liquefied natural gas and a new supply chain will help calm the market with lower and more stable prices.»
In recent months Eesti Gaas has purchased three shipments of liquefied natural gas from Polish state company PGNiG.
In May and June tanker ships carrying gas from the US arrived in Klaipeda. At the end of June tanker ships arrived from Norway, carrying gas to satisfy clients’ needs until autumn.
The new contract with Equinor will help cover gas demand for the entire heating season.