On a supply contract with Ekonner ASA on Liquid Natural Gas

AB “Ignitis grupė” (hereinafter – Ignitis Group or Company) August 27, 2021, the subsidiary of the company UAB “Ignitis” (hereinafter – Ignitis) announces the amendment and signing of the contract. With Equinor ASA regarding liquid natural gas intended for designated supply operations. The company did not announce the signing of the contract.

In February 2014, Ignitis was appointed to conduct and supply the designated supply for the 2015–2024 procurement process to ensure the diversity of natural gas supply to Lithuania and the operation of the liquid natural gas terminal in Klaipeda. The amount of mandatory supply, the amount of which is determined by the Government of the Republic of Lithuania (hereinafter – the Government), and the Export of Natural Gas (hereinafter – LNG) is determined by the Clipa ė da. For this operation. In 2014, the contract expired. Concluded in 2014, It will be upgraded in 2016 and will run until 2024. According to effective law, the difference between the price paid for the purchase of an Algerian load under the contract and the average price of gas imported into the Republic. Lithuania covers and compensates for Ignitis using the LNG Terminal Security Unit paid by Lithuanian natural gas consumers.

The company In 2019, the government will have to approve a mandatory supply of LNG terminals for five years (until the end of 2024), which is 4-6 normal LNG shipments per year. However, four standard LNG shipments per year were approved for a period of one year only in 2020 and 2021, and since then the Lithuanian Ministry of Energy and Ignitius have been looking for routes. Reduce supply costs.

Respectfully, at the December 30, 2020 meeting (meeting number 59), the government accepted the minute-long order from the IgNitis terminal provider Ignitis and the monitoring provider to develop measures to improve economic efficiency. A.D. Implemented to ensure natural gas at low cost and low negative impact until March 31, 2021. The Ministry of Finance of the Republic of Lithuania has been instructed to prepare an analysis of the price reduction options regarding the mandatory supply of jobs. LNG Terminal, with the Ministry of Energy of the Republic of Lithuania. In addition, In an additional letter dated February 1721, the Ministry of Finance of the Republic of Lithuania announced that the majority shareholder owned 73.08% of the company’s shares to implement the rationale for AB “Ignitis Group”. To ensure minimal negative impact on natural gas prices and to contribute to the implementation of the National Energy Freedom Strategy, LNG

In light of the above, Ignitius has been actively negotiating with Ekinor Asa and in August 2021 reached an agreement with Equinor ASA to amend the contract. The amendment of the contract makes the LNG more convenient. Established a freight supply structure. This will save 14-17 million euros for the rest of the contract period, with 20% to 2024 by the end of the contract, with optimal gas refining and boiling. In addition, after the amendment of the contract, the cost of purchasing LNG goods in accordance with the contract and the average price of gas imported into the Republic of Lithuania will be very stable.

Agreement ensures the continuity and security of Ignitis as the designated supplier fully respects the energy needs of Lithuania and the company and all shareholders.

The company announces that the required supply of LGNA terminals will be submitted to the Government of the Republic of Lithuania this fall.
Source – Ignitis group

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