Ignitis Signs Long-Term LNG Purchase Agreement with EQT Corporation

Ignitis, a natural gas provider in Lithuania, has entered into a long-term liquefied natural gas (LNG) purchase agreement with EQT Corporation, a US-based natural gas producer. The agreement, covering the period from 2027 to 2036, will see Ignitis commit to purchasing 10 LNG cargoes annually, each consisting of approximately 1 terawatt-hour (TWh) of energy.

The decision to enter into this agreement is part of Ignitis' strategy to diversify its natural gas supply sources and enhance the flexibility and stability of its residential natural gas supply. Ignitis will link the pricing under this agreement to two international benchmarks: the U.S. Henry Hub and the European TTF index. This move is significant as it allows Ignitis to better manage the risks associated with natural gas price volatility, ensuring more stable conditions for residential consumers.

Following the approval of the National Energy Regulatory Council (NERC) to amend the methodology for setting state-regulated prices in the natural gas sector, Ignitis has been able to incorporate both short-term and long-term contract prices, including international benchmarks, into its price setting for residential consumers. The company submitted a justification for the agreement to NERC before finalizing the deal.

The transaction will also be subject to review by the Commission for the Coordination of the Protection of Objects Important to National Security, as required by the Law on the Protection of Objects Important to National Security of the Republic of Lithuania. Additionally, Ignitis must secure the approval of EQT Corporation's corporate governing bodies. Any material changes that could impact the agreement will be communicated to the market through a separate notification.

According to the terms of the agreement, Ignitis will purchase one LNG cargo per year, contributing to the diversification of its supply portfolio. This move is expected to enhance the company's ability to manage supply risks and provide more stable energy prices to its residential customers in Lithuania.

The agreement aligns with Ignitis' broader strategy to ensure a reliable and sustainable energy supply for its customers. By entering into this long-term LNG purchase agreement, Ignitis demonstrates its commitment to reducing reliance on traditional gas sources and exploring alternative, more flexible energy solutions.