Page 6 - FSUOGM Week 07 2023

FSUOGM COMMENTARY FSUOGM

LNG demand soars in Baltics

as region continues pivot

away from Russian gas

The Baltic states have been among the fastest to phase out Russian gas.

RUSSIA BALTIC countries are securing liquified natu- supplies for the summer season. While other EU
ral gas (LNG) in vast quantities seeking to take member states continue to take steps to reduce
WHAT: advantage of falling gas prices as the northern imports of Russian gas, the Baltic countries along
Baltic countries have European nations accelerate the diversification with the UK have banned Russian gas and LNG
sought to capitalize on of their energy supply after quitting Russian gas imports.
slumping LNG prices, following the invasion of Ukraine.
placing a handful of With gas prices plummeting by over 80% LNG dependent
tenders for the months since peaking in August, LNG cargoes have Prior to Russia’s invasion of Ukraine, the Baltic
ahead. become increasingly attractive compared to nations were heavily reliant on Russia for their
alternatives such as fuel oil and coal. energy supply. In particular, Estonia and Lithu-
WHY: Estonia’s Eesti Gaas AS has announced that ania sourced around three-quarters of their gas
Having banned both gas in the coming weeks it will issue a tender to imports from Russia.
and LNG imports from purchase seven LNG cargoes for delivery from Now, with Russian gas no longer an option,
Russia, Baltic nations April through September into Finland’s new the countries find themselves heavily dependent
have been forced to ramp floating LNG terminal, Inkoo. It marks the latest on LNG to fill the supply gap since the region is
up LNG imports to make announcement for the company, which already not connected to the rest of Europe by pipelines.
up the supply loss from purchased fuel for the first three months of the In April, Lithuania became the first Euro-
Russian gas. year to be delivered by Equinor ASA. pean country to swap Russian gas for LNG, with
Meanwhile, Estonian energy group Elenger the country’s gas transmission system operator
WHAT NEXT: has also procured LNG from the US to the port Amber Grid declaring that all Lithuania’s natu-
LNG infrastructure of Klaipeda in Lithuania with another agreement ral gas demand was now being met through the
has been significantly in place for an additional cargo to be delivered in Klaipeda LNG terminal, with the main source of
improved recently and March. The company also plans to import LNG LNG being Norway, with increases also reported
with a new terminal through Inkoo in the second and third quarters. from the US.
expected to be Additionally, Lithuania has also stocked up on Meanwhile, sendout at Lithuania’s 2.9mn
constructed in Latvia tenders capitalizing on the slump in prices. tonnes per year Klaipeda terminal nearly dou-
shortly, the region could Having avoided a cold winter, European bled in 2022 from its level the year before. Send-
emerge as an LNG hub. nations are now in the process of restocking out soared to 32.1 terawatt hours (TWh) up

P6 www. NEWSBASE .com Week 07 15•February•2023