The Cabinet approved this proposal on Wednesday.
The Finance Ministry says that the Energy Ministry, which currently indirectly controls the electricity transmission grid operator Litgrid, would indirectly control both energy supply and transmission operations after LitGas receives a natural gas supply license and launches supply operations. That is regarded as impermissible control under the EU's Third Energy Package.
"Following the transfer of LitGas to VAE or a company controlled by it, the Finance Ministry would control production and supply activities and the Energy Ministry would control transmission activities, which would be in line with the Third Energy Package's requirement for separation of production and supply activities from transmission activities," the Finance Ministry said in a document.
It is planned that VAE will purchase a new share issue by LitGas and will hold at least two-thirds of shares in the LNG company after the share capital increase.
LitGas currently has an authorized share capital of 1 million litas (EUR 0.3m) formed through a cash contribution from Klaipėdos Nafta. It is planned that LitGas will launch operations at the same time as the LNG terminal in Klaipėda, that is, in late 2014.
