Lithuania secures a decade of US gas supplies for the first time, bringing greater price stability for residents
Signing of the Agreement Between “Ignitis” and U.S. Natural Gas Producer EQT
Lithuania has secured a 10-year supply of gas from the United States that will cover approximately 40 percent of gas demand among the country’s residents. The agreement not only marks the first long-term contract with an American company, but also introduces the US Henry Hub index into the pricing formula for the first time, helping to ensure greater stability and protect against price spikes in European markets.
On 21 September, Ignitis signed the agreement with US natural gas producer EQT. Under the new agreement, Ignitis will purchase 10 liquefied natural gas (LNG) cargoes between 2027 and 2036 – one cargo, or around 1 terawatt-hour (TWh) of gas, per year.
‘The cost of gas for Lithuanian residents should not depend solely on what is happening on European gas exchanges. Through this agreement, we are securing a significant share of the gas needed by residents from the US for 10 years and, for the first time, incorporating American pricing. This is a concrete step towards reducing our vulnerability: if gas prices suddenly spike on the European market, lower dependence on European prices will help cushion the impact on residents’ bills,’ says Minister of Energy Lukas Savickas.
For the first time – US gas market pricing
Under this agreement, Ignitis will purchase natural gas for the first time using pricing linked to the US Henry Hub index.
This is important for consumers because the price of the gas purchased will be linked to two different markets. By reducing dependence on the European TTF index alone, the risk of a sudden price spike in Europe being fully passed on to the price consumers pay for gas will also be reduced.
‘This long-term agreement is an important step towards strengthening the security and flexibility of natural gas supplies for Lithuanian residential customers. It will allow us to diversify our sources of supply, manage price fluctuation risks more effectively, and ensure more stable supply conditions over the longer term,’ says Ignitis CEO Andrius Kavaliauskas.
The agreement was concluded following the call for binding bids for long-term LNG supplies announced on 25 August 2026. EQT Corporation submitted the best offer in the tender. One of the largest natural gas producers in the United States, EQT is actively expanding its activities across the LNG value chain and developing long-term LNG supplies for international markets.
The long-term LNG supply agreement is meant to meet the needs of residential consumers of natural gas. It will contribute to diversifying natural gas supply sources, increasing supply flexibility, managing natural gas price fluctuation risks more effectively, and ensuring more stable supply conditions for Lithuanian residential consumers.
The pricing of the agreement is linked to two international natural gas price indices – the US Henry Hub and the European TTF.
Following the approval by the National Energy Regulatory Council (VERT) of amendments to the methodology for setting state-regulated prices in the natural gas sector, Ignitis is able to take into account the prices of both short-term and long-term agreements when forming its natural gas supply portfolio for residential consumers and apply a broader range of international price indices. The associated costs are recognised when setting natural gas prices for residential consumers. In accordance with the methodology, Ignitis provided VERT with a justification of the benefits of the agreement before concluding it.