Lithuanian Energy negotiating gas swaps with Lithuanian Gas

Earlier this year, Lietuvos Energija approached Gazprom Export, a subsidiary of Russia’s Gazprom, with a swap proposal but was advised to address this matter to Lietuvos Dujos.

“Gazprom’s reply was non-specific, referring to Lietuvos Dujos as the main partner for gas trade in Lithuania. We did that and are now trying to find out whether it is possible to clinch such a deal, ... how it could be implemented. Now we are waiting for the final answer,” Lietuvos Energija CEO Dalius Misiūnas told BNS.

Lietuvos Energija fires natural gas bought from Russia at Lietuvos Elektrinė (Lithuanian Power Plant), which will launch a new 450 MW unit in fall.

Unofficial sources say that Lietuvos Energija might lodge a complaint against Gazprom with international arbitration if the response from Lietuvos Dujos, which is partly owned by the Russian gas monopoly, is negative. However, Misiūnas would not confirm that to BNS.

Sigita Petrikonytė-Jurkūnienė, Lietuvos Dujos’ spokeswoman, confirmed to BNS that the company had received such a request from Lietuvos Energija.

“Lietuvos Dujos received an inquiry from Lietuvos Energija and will answer it,” she said.

Lietuvos Energija claims that swaps would enable the company to reduce its gas costs, which would effectively drive down the prices of electricity for Lithuania’s users. If the deal is reached, Lietuvos Energija could swap natural gas acquired in European countries for gas supplied to Lithuania by Gazprom.

An unnamed gas supplier approached Lietuvos Energija in January with a proposal to sell gas from 2013. Lietuvos Energija then said that the potential nearest site of gas supply would be the German-Polish border.

Meanwhile, Lietuvos Energija and Klaipėdos Nafta (Klaipėda Oil), state-owned petroleum products terminal operator, signed the first preliminary deal on the supply of gas from the prospective liquefied natural gas (LNG) terminal.