Statoil to supply gas to Lithuania in five-year deal

|About: Statoil ASA (STO)|By:, SA News Editor

Statoil (STO +0.4%) signs a five-year deal with Lithuanian gas supplier Litgas to deliver 540M cubic meters/year of liquefied natural gas from 2015, a move that could end Lithuania's dependence on Russian gas.

STO's first shipment of LNG is set to be delivered at the Klaipeda terminal in December, with a new floating terminal set to begin commercial operations by Jan. 1, 2015.

Lithuania is currently dependent on Gazprom (OTCPK:OGZPY) for 100% of its gas, and the country has been paying 15% higher than the European average gas price.