Lithuanian Companies Merge To Tap Into Opportunities from LNG, Baltic Region
While Lithuanian authorities give their green light to the merge of LITGAS and Lietuvos Duju Tiekimas, companies move on with their plans on the Norwegian Continental Shelf, seen by Vilnius as a strategic partner.
Wintershall, Petoro and Centrica Resources submitted a 15.3 billion NOK Plan for Development and Operation (PDO) for the Maria field in the Norwegian Sea to the Norwegian Ministry of Petroleum and Energy. The recoverable reserves on the field are estimated at around 180 million barrels of oil equivalent (boe).
“We are well on track on the Norwegian Continental Shelf. Making this investment decision to bring our own discovery Maria into production demonstrates our long-term commitment to Norway. Norway is a core region for us” Martin Bachmann, Member of the Board of Executive Directors of Wintershall, commented in a note.
Vilnius see LNG from Norway as a key factor to increase its clout in the Baltic region. For this purpose, the state controlled energy company Lietuvos Energija decided to merge its two gas daughter companies.
“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,” Dalius Misiunas, the chairman of the board and chief executive officer of Lietuvos Energija, said in a note.
According to the communiqué, the new company will also develop small-scale activity of LNG supply in cooperation with Statoil, while tapping into new opportunities stemming from the liberalisation of gas markets in the region and the under-construction pipeline connecting Lithuania to Poland.
Earlier this year, Lithuania’s LITGAS obtained the green light to trade in the Estonian gas market without any additional licence by Estonian Competition Authority.
LNG: GROWING OPPORTUNITIES?
Experts, and politicians are increasingly seeing LNG as a keystone for energy security, while companies are trying to reap the benefit of the growing momentum for new sources of gas and new technologies.
Also on Tuesday, VTG Aktiengesellschaft showcased the first tank wagon for transporting LNG (Liquefied Natural Gas) in Europe.
“We are extremely pleased to be a part of this innovative development and crafting this opportunity to make LNG fit for transport by rail” Thomas Carey, Chairman of the company teaming up with VTG, said in a note.