OREANDA-NEWS. Lithuanian state-run gas firm Litgas is seeking to divert LNG cargoes under its deal with Norway's Statoil because of declining domestic gas consumption.

The government presented proposals to the Lithuanian parliament this week that contained provisions to allow cargoes bought from Statoil to be diverted before they reach the Klaipeda terminal, Litgas said. Diversions are possible under the existing contract with Statoil, it added.

The company expects gas demand for power generation and heating to drop to 2.73TWh (260mn m?) in 2016 from 6.03TWh this year.

Statoil and Litgas subsidiary Lietuvos Energija have a supply agreement for 540mn m?/yr of gas equivalent, or six to seven cargoes a year of LNG.