Lithuania takes control of utilities

Lithuania says a 147-million-euro acquisition of its gas and power utilities improves the country's chances of energy independence.

Lithuania has acquired majority control over its gas and power utilities, part of its strategy aimed at breaking Russian giant Gazprom's monopoly on gas supplies to the EU member.

Lithuania bought a 38.9 per cent stake held by German power supplier E.ON in the Lietuvos Dujos gas utility and Amber Grid transmission network.

The deal takes the state's holding to 56.6 per cent, compared to 37.1 owned by Gazprom.

The 147-million-euros ($A220 million) acquisition "improves our country's chances of achieving energy independence and protecting consumer interests", Finance Minister Rimantas Sadzius said in a statement on Wednesday.

Lithuania still imports all of its natural gas from Russia, and retaking control of the infrastructure is key to the ex-Soviet EU member state's energy diversification strategy, which is focussed on a liquefied natural gas (LNG) terminal due to open on its Baltic Sea coast by the end of this year.

Earlier this month Lietuvos Dujos said it reached an agreement with Gazprom to slash the price of its gas deliveries to Lithuania.

The utility, which has a 40 per cent market share in the small Baltic state, did not specify the size of the price cut, saying only that it would be passed on to the market soon.

Under the deal, Lithuania also bought from E.ON an 11.8 per cent stake in the LESTO electricity distribution network operator.


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Source: AAP



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