Belarusian Oil Company (BNK) refused to renew long-term contract with LTG Cargo

Belarusian Oil Company (BNK) refused to renew long-term contract with LTG Cargo

The Belarusian Oil Company (BOC), an exporter of Belarusian petroleum products, has decided not to renew its long-term agreement with LTG Cargo, a Lithuanian railway company that transports its products to the port of Klaipeda, reports the railway magazine Railway Supply, citing  Verslo žinios.

However, the companies will work together as needed. After the expiration the term of a three-year contract on December 31, Belarusian oil products will be transported only according to the needs of BNK and without any obligations.

According to LTG Cargo, they have agreed with the Belarusian Oil Company on the volume of cargo transportation to Klaipeda port in January. According to preliminary data, 60-70 thousand tons of dark oil products will be transported.

According to the CEO of LTG Cargo Egidijus Lazauskas, currently there is a lot of uncertainty in the cargo transportation market, so each cargo is important for the company. “The Belarusian chain of cargo transportation creates an economic effect not only for us, but also for other companies,” he said.

Now, LTG Cargo is focused on developing and diversifying its business – implementing strategic development in Central and Eastern Europe, it is preparing to transport cargo in Poland, actively exploring other countries in the region, offering new services.

Last year LTG Cargo transported about 2 million tons of BNK cargo – oil and oil products (3.7% of the total annual cargo traffic of the Lithuanian company.

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