Eesti Gaas signed an agreement to buy 2 terawatt-hours (TWh) of liquefied natural gas to secure Estonia's supply for the upcoming winter. The deal cost approximately €300 million.
The company made the agreement with Norway's energy group Equinor and gas will arrive at Lithuania's Klaipeda LNG terminal in October and November.
The contact means "greater peace of mind" for the market and security for customers, Margus Kaasik, chairman of the Board of Eesti Gaas said.
Eesti Gaas will continue to buy more LNG, he added.
"Natural gas was, is, and will remain one of the most convenient and clean fuels. The price of gas will likely be high in the upcoming winter, but looking a little further ahead, the transition to LNG and the establishment of new supply chains will eventually bring calm to the market with lower and more stable prices," said Kaasik.
Eesti Gaas has acquired three large LNG-based gas supplies from the Polish state company PGNiG in recent months.
At the beginning of May and early June, gas tankers arrived in Klaipeda with LNG from the United States and at the end of June from Norway, which will ensure customers' gas supply until autumn.
The new contract with Equinor will cover gas consumption throughout the heating season.
Editor: Helen Wright