The plans have already been approved by the Finance Ministry which is the shareholder of Lietuvos Energija.
The analysis carried out has revealed that one company will be able to use its natural gas supply alternatives and administrative resources better, increase the reliability of gas supply and offer its clients new services and products.
Following the merger, the company will be named Lietuvos Duju Tiekimas. According to plans, the company will also take over the status of the designated supplier of liquefied natural gas (LNG) and all related obligations and rights.
Meanwhile, the name LITGAS will be used as a trademark in the international activities carried out by Lietuvos Dujų Tiekimas. As an individual company, LITGAS has already gained considerable experience in international markets, therefore, Lietuvos Energija decided to take advantage of this trademark further.
“The merger of two natural gas supply companies controlled by the same shareholder is a logical decision. This will open new opportunities for making the operation of the company more effective and will allow us to offer new services and products in the Lithuanian market and the markets of the neighbouring countries in a more flexible manner. I believe the unified company will be able to compete in the region better,” Dr Dalius Misiunas, the chairman of the board and CEO of Lietuvos Energija, said.
Following the merger, Lietuvos Dujų Tiekimas will further guarantee the designated supply of natural gas via the LNG terminal in Klaipėda, expand natural gas trading capacity in the region, and develop small-scale activities of LNG supply in cooperation with Statoil, e.g., supply LNG as ship fuel.
According to the CEO of Lietuvos Energija, the goal will be set for Lietuvos Dujų Tiekimas to become a powerful gas supply company in the region. This will be possible once gas supply activities are liberalised in all Baltic countries and after a natural gas pipeline interconnection between Lithuania and Poland is completed.
The merger of Lietuvos Dujų Tiekimas and LITGAS is planned to be finalised by the end of this year.