News

VILNIUS, Sept 29, BNS - The European Commission (EC) has extended 425,000 euros for studying feasibility of building a gas pipeline between Poland and Lithuania. Last week the European Union (EU) Member States taking part in the TEN-E Committee meeting approved a list of projects, in line with which the EU would provide a 50 percent support to a 850,000 euros worth project being implemented by Poland's gas transmission system operator Gaz-System and Lithuania's gas importer and supplier Lietuvos Dujos (Lithuanian Gas).

"It is a very important project of the National Energy Strategy - we have until 2020 to implement the key measures, which would form a basis for creating both the common energy market and the common gas market," Energy Vice-Minister Romas Svedas told BNS.

According to him, Russia's Gazprom, the sole gas supplier, has split three Baltic countries into separate gas recipients, the countries are isolated from continental Europe and have no supply alternatives.

In August Gaz-System and Lietuvos Dujos signed a document on cooperationin studying possibilities to build a gas pipeline between Poland and Lithuania.

EU allocates close to EUR 1 mln for studying connection between Baltic, European power grids

VILNIUS, Sept 29, BNS - The European Commission (EC) has allocated
950,000 euros for studying the connection of Baltic electricity system with
Western European energy system.

The amount covers 50 percent of total costs of the study (EUR 1.9 mln).

Last week the European Union (EU) Member States taking part in the TEN-E
Committee meeting approved a list of projects, under which the EU would
provide support to a joint project of transmission system operators,
including Lithuania's Litgrid, Latvija's Augstsprieguma Tikls and Estonia's
Elering.

"The European Union (EU) supports the integration of Lithuania and other
Baltic countries into the EU internal energy market not just with words but
also with specific works. This is the first project involving an application
from all three Baltic countries. It will contribute to the creation of
regional energy market and the principle of integrated competition," Energy
Vice-Minister Romas Svedas told BNS.

The transmission system operators of the Baltic countries applied to then
existing Union for the Coordination of Transmission of Electricity (UCTE)
(now the European Network of Transmission System Operators for Electricity
(ENTSO-E)) concerning the connection to the European continental grids back
in 2007.

The Baltic countries are expected to pass official decisions on the
connection of their systems with Western Europe in the second half of 2012
at the latest. Actual implementation of the project might be launched early
in 2013.

Brussels allocates extra EUR 0.5 mln for Lithuania's LNG terminal's feasibility study

VILNIUS, Sept 29, BNS - The European Commission (EC) has allocated
additional 0.55 million euros for studying feasibility of building a
liquefied natural gas (LNG) terminal in Lithuania.

Last week the European Union (EU) Member States taking part in the TEN-E
Committee meeting approved a list of projects, in line with which the EU
would provide a 50 percent support to a 1.1 million euros worth project
implemented by Belgium's LNG importer and supplier Exmar Marine.

Energy Vice-Minister Romas Svedas told BNS that the funding was allocated
for the second stage of feasibility study. The timing and the method of the
study would depend on the Energy Ministry, he said adding that "each task
shall be formulated based on our conception".

Earlier the Commission allocated 212,000 euros to Exmar for studying the
same project.

According to Svedas, an LGN terminal's task group under his lead has
already started drafting the conclusions, which, in his opinion, should be
submitted to the government in the second half of October.

As reported by media, Exmar, which submitted a final report of the
terminal's feasibility study to Svedas-led task group last Monday, has
proposed to Lithuania to build a floating regasification terminal in the
southern part of the port of Klaipeda close to the Kiaules Nugara island in
the Curonian Lagoon.

The acceptance of Exmar's offer would necessitate many studies, including
hydrodynamic, navigation and environmental impact assessment.

According to preliminary estimations, a small gas tanker with the
capacity of 60,000 cubic meters should arrive once in eight days.

The members of the LNG terminal's task group were asked to choose 3 main
locations, which, in their opinion, would be the most suitable for the
terminal, out of 15 options. Three options are favored now - a deep-water
port or the outport, the option proposed by Exmar and the option of open sea
between Butinge and Palanga.