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Estonian utility completes agreements for 10 LNG shipments

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Estonian utility completes agreements for 10 LNG shipments

Estonian gas utility Eesti Gaas said it expected to use Finland and Lithuania’s import facilities to ship 10 LNG cargoes to the Baltic States and Finland this year. After Russia invaded Ukraine in February, Estonia, its Baltic neighbors, Lithuania and Latvia, as well as Finland, stopped importing natural gas from Russia.

One of the three LNG cargoes booked for this year has already arrived in January. The remaining seven LNG cargoes will be delivered to the Finnish port of Inkoo in the spring and summer. Kersti Tumm, told Reuters on Tuesday that they might order more LNG tankers for this winter.

European gas prices have gone down a lot since last summer. Eesti Gaas said last week that it expects more people to use gas. According to the company’s Chief Executive Margus Kaasik, “Gas prices have returned to pre-war levels, and gas is once again less expensive than, for example, light heating oil or propane.”

Eesti Gaas purchased five LNG cargoes last year. Five were delivered to the Klaipeda terminal, which has been in service since 2014. Three of the cargoes came from the United States and two from Norway.

More about LNG Natural gas

Finland will rent a floating storage and regasification unit (FSRU) this year to act as an import terminal at the port of Inkoo. The terminal’s operator, Gasgrid, announced last Friday that seven terminal slots in total had been reserved by January 9 for the second and third quarters. Eesti Gaas, or Elenger, works in Poland, Baltic nations, and Finland. According to a company representative, in 2023, consumers outside Estonia will account for over 70% of its energy sales.

Although it produces 16% of the world’s oil, Russia barely exports 4% to 5% of it. However, the oil markets have a long history of being hypersensitive to even the smallest adjustments, and in this situation, there is currently no proof that the Russians have altered their oil and gas shipments in any way. There are some reports that they would shorten supplies in 2021. However, there is no information available on volumes, and the publicly available data just indicates that oil output is still not back to its pre-COVID levels.

Oil dealers’ panic buying may be the cause of the entire price surge since November 2022, and this is probably the case. The traders will appear to be geniuses if something occurs during the battle that changes oil output or delivery. They will all spend the rest of their lives working in marijuana plantations if nothing stops the manufacture of oil. They will likely share space with the crypto community.

The post Estonian utility completes agreements for 10 LNG shipments appeared first on FinanceBrokerage.

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