As very low gas prices prevailed in global markets during the past six months, Amber Grid, the Lithuanian gas transmission system operator, has increased gas transportation via the interconnection with Latvia. At the same time, growing gas consumption in Lithuania’s power sector was a counterbalance to a lower demand for gas in the first months of the year due to unusually warm weather.
During the first six months of 2020, 15.3 terawatt hours (TWh) of natural gas were supplied to Lithuania (excluding transportation to the Kaliningrad Region), which is almost 10 % more than in the same period of 2019 when Lithuania received 14 TWh of natural gas. 2.5 TWh of natural gas were transported in the direction of Latvia via the interconnection; the volumes have doubled year-on-year (1st half-year of 2019: 1.2 TWh).
While gas consumption in Lithuania had dropped in the first quarter of the year due to warm winter, the figures show that the consumption in the first six months was the same as last year: 12.6 TWh. Lithuania’s consumption was driven by the electricity generating facilities of Ignitis Gamyba – the more intensive use of gas in the electricity generation was determined by very low prices for gas and by a favourable situation in the electricity market.
‘Electricity generated from gas, which has been very competitive lately, compensated for the lower gas transportation volumes during warm winter months. The falling prices of gas contracts are both promoting the use of gas and providing an incentive for putting gas into storage to Inčukalns UGS facility in Latvia. This year, the demand for this storage facility significantly exceeds its capacities’, says Nemunas Biknius, CEO of Amber Grid.
In the 1st half-year of 2020, 72% of total gas quantity was supplied to consumers in Lithuania and other Baltic States from the Klaipėda liquefied natural gas (LNG) terminal, and 28% via pipelines from Belarus and Latvia. The gas quantities supplied through the Klaipėda LNG terminal have nearly doubled, i.e. have increased 85% year-on-year. In the 1st half-year of 2019, consumers in Lithuania and other Baltic States received 43% of the gas from the Klaipėda LNG terminal, whereas and 57% were supplied via pipelines.
Gas quantities transported from Belarus to the Kaliningrad Region via Lithuania totalled 12.4 TWh during the first 6 months of this year, i.e. 8% less compared with previous year, when 13.5 TWh of natural gas reached the Kaliningrad Region by transit.
Gas is supplied to Lithuania through the Klaipėda LNG terminal and from Russia via Belarus and Latvia. After putting the Gas Interconnection Poland-Lithuania into operation in 2022, one more gas supply source will be established. This will diversify the gas supply from various sources via Poland to Lithuania, other Baltic States and Finland.
