Lithuania to take part in Gazprom’s gas auction

Gazprom has said it will offer 560 million cubic meters of gas to Latvia and Lithuania, about 14% of the Baltic states‘ total demand. Most of it, 470 million cubic meters, is intended for Lithuania.

Mantas Mikalajūnas, the CEO of Lietuvos Dujų Tiekimas, said: “We need time to look and evaluate the recently posted Gazprom’s rules of participation in the auction and the main gas supply conditions. We will base our decision whether to participation in the auction on the economic logic – essentially the price, which will be revealed only in the second phase of the auction.”

Gazprom held a pilot auction in mid-September in Western and Northern Europe and sold a billion cubic meters of gas, well below the planned amount of 3.2 billion cubic meters.

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Currently, Lietuvos Dujų Tiekimas has a gas supply contract with Statoil. Mikalajūnas said the company has almost enough gas for the year, including the gas left from the expiring contract with Gazprom, about 200 million cubic meters.

Lietuvos Dujų Tiekimas estimates that the consumption of natural gas might reach 2 billion cubic meters in 2016.

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