Goodbye Russian Natural Gas! Lithuania signs US deal!!!

[Hindustani78]

Lithuania’s top court says LNG facility law compliant with Constitution - EN.DELFI
Friday, April 3, 2015

• Lithuania’s Law on the Liquefied Natural Gas (LNG) Terminal, as amended, complies with the Constitution, the Constitutional Court ruled on Friday.
  
  
  
  LNG Terminal
  Foto: DELFI (V.Spurytės nuotr.)
  According to the court, the provision, which identified state-owned company Klaipėdos Nafta (Klaipėda Oil) as the LNG facility project developer and which remained unchanged in the amended version of the law, was in line with the state’s fundamental law.
  
  In addition to that, the court established that the so-called LNG supplement, which was applied in 2013 and has already been scrapped, was legitimate.
  
  This means that Achema, the Lithuanian fertilizer manufacturer and the largest single gas consumer in the country, may eventually have to pay 14.2 million euros in that supplement, which it refused to pay in 2013 and challenged in court.
  
  “The Constitutional Court has finally dismissed all doubts, if there were any, of transparency and legality of the LNG facility project. It’s an additional solid proof that Lithuania is able to ensure transparent and high-quality implementation of vital projects contributing to the country’s energy security,” Energy Minister Rokas Masiulis said in a press release.
  
  
  Opposition leader and former Prime Minister Andrius Kubilius told reporters that the court’s decision was important as it would put an end to Achema’s bad practice of looking for loopholes to evade statutory taxes.
  
  Meanwhile lawyer Gytis Kaminskas, who represented a group of Social Democratic MPs, including Vytenis Andriukaitis, the current EU Commissioner for Health and Food Safety, stated that the court’s decision showed that it continued to apply double standards.
  
  Rytis Budrius, chief lawyer at Achema, said that the company expected a different decision.
  
  The fertilizer manufacturer would study the court’s arguments and would consider ways to end ongoing litigation in courts, he said.
  
  “We hope that the authorities will consider changes in the natural gas sector brought by a drastic decrease in natural gas consumption and the resulting disproportionate growth in the burden on our company,” the lawyer told reporters.
  

 

[UKBengali]

I think it has more to do with Putin. He thinks he is still living in cold war era when Russia was a super power. He doesnt seem to come to terms with the fact that the U.S.S.R collapse and they will probably never be a superpower again like they were in the past. Since the world has changed alot, and there are other more viable/dynamic Asian/developing countries/powers who are only set to get stronger while Russia gets weaker. Putin by going all out against the West/.U.S head on is only precipitating Russia's decline/demise. Wait and see the situuation in which they will find themselves if he continues on this path. You should know your strength and that of your adversary. Never overestimate yours and know when/how to make compromises. Since no matter what others might say, the west/U.S is still by far the worlds dominant powers and rule makers in today's world. So its not viable to go against them head on/overtly while you are not even remotely as strong/influential/powerful as them in ALL FIELDS.

Russia’s GDP Estimated To Contract By 5.5% In 2015, Impacting Armenia's Economy: Moody’s

I don't see how the West can really punish Russia that it's economy will collapse. Already analysts seem to think that Russia GDP will contract by only 3% this year - this is only a normal type of recession that most developed countries experience in the economic cycle.

Putin knows that both Russia and China will back him - they are both large consumers of oil and gas and will continue to grow even more into the future. As the West cuts down on Russian oil/gas this will be re-routed to the Asian market.

A good example of how Russia has powerful alternative partners is the recent agreement by both Russia and China to produce the large C-929 jetliner. China will be able to provide both expertise,capital and a large market when the jet is ready around the middle of next decade.

He is betting on the West not being able to hurt Russia too much while large developing countries like China/India eventually become alternative trade partners, and there is no reason to think he is wrong there.

 

[Viper0011.]

Lithuania signs US deal to replace Russian gas

Lithuania said Saturday it had signed a trade agreement to buy liquified natural gas from the United States in a move aimed at reducing the EU Baltic state's heavy dependence on Russian gas deliveries.

Under the deal with Houston-based Chenier Energy company, the first LNG fuel is expected to arrive in Lithuania as early as next year, state-owned company Litgas said in a statement.!

There are a few other energy companies out of Houston, which are reviewing some serious business ventures with a few Central Russian states. I know Schlumberger wants to setup an entire distribution network in that area. The Shale reserves are huge in North America. Time to help the world replace Russia as a major energy broker

 

[flamer84]

I don't see how the West can really punish Russia that it's economy will collapse. Already analysts seem to think that Russia GDP will contract by only 3% this year - this is only a normal type of recession that most developed countries experience in the economic cycle.

Except that Russia is not a developed country but a developing one.I've said it before,if a 40k per capita Euro country has -1% economic slash everybody shouts "disaster",if the 14k per capita Russia has a -3,well..."no problems at all!".

 

[Hindustani78]

Except that Russia is not a developed country but a developing one.I've said it before,if a 40k per capita Euro country has -1% economic slash everybody shouts "disaster",if the 14k per capita Russia has a -3,well..."no problems at all!".

All countries are developing in that region but Russian Federation is investing alot in Military modernization.

 

[Musalman]

Russia is flaring more gas than the total consumption of western europe. Lithuania has made a very short sighted decision. US gas is cheap these days but the demand for gas likely to go up making LNG very expensive. Russian I think were selling them very cheap gas.
Nothing will happen to Russian as they might divert their lines from Europe to CHina and Japan, which is even a bigger market than Europe.

 

[Gibbs]

All i see is a lot of empty gas from Lithuania.. And it's not the LNG type

 

[Hindustani78]

All i see is a lot of empty gas from Lithuania.. And it's not the LNG type

Its more about reducing dependence on Russian gas. Russian gas is costly in whole Europe for Lithuania.

 

[Gibbs]

Its more about reducing dependence on Russian gas. Russian gas is costly in whole Europe for Lithuania.

And American Gas would be cheaper ?? Oh i see the logic................. Wait nope i dont..

 

[Hindustani78]

And American Gas would be cheaper ?? Oh i see the logic................. Wait nope i dont..

Lithuania will have option to get gas from any country . be it US or GCC etc

by the way today's news.

Lithuania will not launch new shale gas tender for now - EN.DELFI

A new tender for exploration and extraction of shale resources in the west of Lithuania will not be launched at this stage, Environment Minister has said.


“Now is not the best time to launch this tender. Many hydrocarbon producers have recently reduced their exploration spending or even put those activities on hold due to geopolitical tensions … and changes in oil prices in the global market,” Minister Kęstutis Trečiokas said in a press release.

The situation is likely to change and the country might find potential investors interested in shale resource exploration in the Tauragė-Šilutė region, according to him.

Early in February, Trečiokas said that “actual work may be launched” in March and the country might issue a tender, provided there was any interest.

Lithuanian Prime Minister Algirdas Butkevičius said last December that he expected that the tender would attract bidders, noting that some US companies had already expressed their interest.

The US energy giant Chevron, the sole bidder in the previous tender for a shale gas exploration and production license, pulled out in October 2013, citing unfavourable tax and legal environment in Lithuania.

According to unconfirmed data, Lithuania could have recoverable shale gas reserves of around 100 billion to 120 billion cubic meters.