State-controlled energy company group Lietuvos Energija decided to merge its two natural gas supply daughter companies, Lietuvos Duju Tiekimas and Litgas .
Such move will create one powerful gas supply company in Lithuania which will seek to expand its activities in the Baltic region, the company said in a statement.
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 and all related obligations and rights.
Meanwhile, the name Litgas will be used as a trademark in the international activities carried out by Lietuvos Duju Tiekimas.
Following the merger, Lietuvos Duju Tiekimas will further guarantee the designated supply of natural gas via the LNG terminal in Klaipeda, expand natural gas trading capacity in the region, and develop small-scale activities of LNG supply in cooperation with Statoil.
According to the CEO of Lietuvos Energija, Dalius Misiunas , the goal will be set for Lietuvos Duju 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 Duju Tiekimas and Litgas is planned to be finalised by the end of this year.
[mappress mapid=”17234″]
Image: Höegh LNG