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It is more expensive. The reason why Lithuania and Poland built LNG terminals is not because it is economical or fun compared to pipelines. It is a pure sunk co
by Gwypaas 5y ago
It is more expensive. The reason why Lithuania and Poland built LNG terminals is not because it is economical or fun compared to pipelines. It is a pure sunk cost. The reason is to secure their supply incase Russia wants to exert influence through the gas supply like it did with Ukraine until 2015 when Ukraina started buying all gas from the EU instead.
They therefore cap the price they pay to what is available on the open LNG market, if the regular supply does not come through.
https://en.wikipedia.org/wiki/Russia%E2%80%93Ukraine_gas_disputes https://en.wikipedia.org/wiki/Russia%E2%80%93Ukraine_gas_dis...