As you know, Lithuania is the only Baltic country that directly buys LNG, since it has a floating Independence terminal, which costs 60 million euros a year for the country. To be able to qualify for EU financial assistance for the purchase of a gas storage vessel from the Norwegian company Hoegh LNG, Lithuania attempted to obtain recognition of Klaipeda Independence terminal as regional. However, it was not possible to reach an agreement with the other two Baltic countries on this issue, therefore the entire financial burden of the terminal's maintenance and servicing lies with Lithuania.
In the Baltics, to buy large volumes of LNG while no one is ready, as Russian gas remains cheaper. To minimize the cost of maintaining the terminal, Lithuania even sells part of the LNG volumes to non-Lithuanian or other Baltic consumers, but to UK
The first LNG for the Klaipeda terminal in 2018 was purchased by the Lithuanian company Litgas from the Norwegian concern Statoil. Last week the Arctic Princess gas carrier delivered 98 thousand cubic meters to Klaipeda. m LNG (57 million cubic meters after regasification), although the planned delivery volume of 138 thousand cubic meters. m LNG (about 80 million). Part of the gas Litgas sold to Britain, taking advantage of a temporary jump in prices in the market.
NBP (National Balancing Point) is a national point of balancing, which is a virtual trading place for the sale, purchase and exchange of British natural gas. This is the point of pricing and supply for the contract for natural gas futures ICE Futures Europe (Intercontinental Exchange). This is the 2nd most liquid gas trading center in Europe, and it has a significant impact on the price that domestic consumers pay for their gas at home. Gas trading in the NBP is similar to the Henry Hub concept in the United States, but differs in that it is not the actual physical location. According to reports, the price of gas for NBP is rising from 20 to 88 euros per megawatt-hour. The trading indicators of the GET Baltic gas market, which is prevalent in Lithuania, do not exceed 20-21 euro.
That is why the gas carriers' routes were reoriented and the cargo destined for Litgas and other LNG buyers in Lithuania was sent to the UK, where it was sold. This opportunity was also used by other traders of LNG cargoes that could offer LNG volumes to significantly empty terminals in the UK for several weeks, explained the member of the board of Lituvas holding Lietuvosenergija Dominikas Tuchkus.
It is known that in 2017, taking advantage of a temporary jump in the market, the company also optimized deliveries - it sold part of the LNG destined for the Klaipeda terminal, reducing the cost of maintaining the terminal by 3 million euros.
When analyzing the energy situation in the UK, it must also be borne in mind that there is a significant external coal dependence in the country. There is evidence that half of the coal imports to the UK for three quarters of 2017 was provided by Russia. This was written in the social network Twitter editor of the international energy information platform ICIS Ed Cox. Of course, with a general decline in the use of coal in Britain, Russia still accounts for about half of the coal supply to the island.