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. Last Updated: 07/27/2016

Lithuania Gas, Gazprom Set Six-Year Deal

VILNIUS, Lithuania -- Gazprom and state-owned utility Lithuanian Gas have signed a six-year natural gas supply deal, LG said.

"The price for the gas in the first half of next year will be fixed, and for the next 18 months it will be calculated according to the mazut [heavy fuel oil] price in Rotterdam," Kestutis Schumacheris, the director general of the gas firm said Thursday.

He declined to give any more information on gas prices for the next half, saying only they would be no higher than in 1999.

The Economics Ministry said last week that Gazprom would like to be paid $76 per 1,000 cubic meters of gas.

The Lithuanian side wanted to tie the cost of gas to that of other types of heating fuel, as the firm was badly hit earlier this year when sagging mazut prices led to a sharp decline in gas consumption, as many clients switched over to the heavy heating oil.

Lithuanian Gas will buy 1.45 billion cubic meters from Gazprom and through intermediaries Stella Vitae and Iteralit in 2000 as gas imports to Lithuania gradually increase to 2.5 billion cubic meters in 2005, Schumacheris said.

Lithuania imported 1.955 billion cubic meters of gas in the first 11 months of the year with Lithuanian Gas purchasing 358 million cubic meters from Gazprom, some 415 million from Stella Vitae and another 220 million from Iteralit.