VILNIUS — During the Lithuanian government’s Monday meeting, the unbundling of the country’s main gas utility Lietuvos Dujos was discussed, a measure that could be implemented by 2012.

Lithuania is now more dependent on Russian natural gas following the shutdown of its nuclear power plant at the start of this year, and it looking to diversify its sources.

The unbundling of the company into separate entities would undo a [private_supervisor]lot of vertical ownership structures within the company, which could streamline the implementation of key projects.

“Changes to the Gas Act will solve two main problems. The first thing: a breakdown of vertically integrated companies in the supply of transmission and network management. The second objective: the strategic implementation of projects, specifically the liquefied natural gas terminal and construction of the gas pipeline to Poland,” Minister of Energy Arvydas Sekmokas told journalists after the government meeting.

A pipeline to Poland is in the works and a liquid natural gas terminal for imports via ship are under way. Both projects would let the country gain a greater degree of independence from Russian gas.

New technology from companies in North America means that Poland will now be able to utilize its massive oil shale reserves for gas, a feat previously impossible with old techniques. The new supplies in the country have boosted the European Union’s reserves by 47 percent.

Sekmokas also cited EU wisdom that unbundling companies would lead to greater investment of resources and lead eventually to a lower price for consumers.

Lietuvos Dujos is largely in the hands of foreign interests. At the end of 2009, the Russian state enterprise Gazprom owned 37.1 percent of Lietuvos Dujos and the German E. ON Ruhrgas International owned 38.9 percent of the company. Just 17.7 percent is owned by the Lithuanian state.

If the company is unbundled into parts, each of the owners would have equal shares of each part.

The government will start drafting the bill on the gas company so it can be heard in Seimas by autumn this year.

Gas bonanza

Meanwhile, Sekmokas announced that the country may have gas reserves in shale similar to those in Poland.

“A very preliminary evaluation shows that the geological structure in southeast Lithuania is very similar to the one in Poland,” Sekmokas said. “Of course, it is necessary to conduct research. However, in Poland this is not occurring quickly either. There are huge prospects in being able to provide gas for us. Even in Poland those examinations have not been conducted yet, and the quantity of shale gas is not clear.”

It would be years before the country could produce any of its own gas from shale deposits, the minister warned. [/private_supervisor] [private_subscription 1 month]lot of vertical ownership structures within the company, which could streamline the implementation of key projects.

“Changes to the Gas Act will solve two main problems. The first thing: a breakdown of vertically integrated companies in the supply of transmission and network management. The second objective: the strategic implementation of projects, specifically the liquefied natural gas terminal and construction of the gas pipeline to Poland,” Minister of Energy Arvydas Sekmokas told journalists after the government meeting.

A pipeline to Poland is in the works and a liquid natural gas terminal for imports via ship are under way. Both projects would let the country gain a greater degree of independence from Russian gas.

New technology from companies in North America means that Poland will now be able to utilize its massive oil shale reserves for gas, a feat previously impossible with old techniques. The new supplies in the country have boosted the European Union’s reserves by 47 percent.

Sekmokas also cited EU wisdom that unbundling companies would lead to greater investment of resources and lead eventually to a lower price for consumers.

Lietuvos Dujos is largely in the hands of foreign interests. At the end of 2009, the Russian state enterprise Gazprom owned 37.1 percent of Lietuvos Dujos and the German E. ON Ruhrgas International owned 38.9 percent of the company. Just 17.7 percent is owned by the Lithuanian state.

If the company is unbundled into parts, each of the owners would have equal shares of each part.

The government will start drafting the bill on the gas company so it can be heard in Seimas by autumn this year.

Gas bonanza

Meanwhile, Sekmokas announced that the country may have gas reserves in shale similar to those in Poland.

“A very preliminary evaluation shows that the geological structure in southeast Lithuania is very similar to the one in Poland,” Sekmokas said. “Of course, it is necessary to conduct research. However, in Poland this is not occurring quickly either. There are huge prospects in being able to provide gas for us. Even in Poland those examinations have not been conducted yet, and the quantity of shale gas is not clear.”

It would be years before the country could produce any of its own gas from shale deposits, the minister warned. [/private_subscription 1 month] [private_subscription 4 months]lot of vertical ownership structures within the company, which could streamline the implementation of key projects.

“Changes to the Gas Act will solve two main problems. The first thing: a breakdown of vertically integrated companies in the supply of transmission and network management. The second objective: the strategic implementation of projects, specifically the liquefied natural gas terminal and construction of the gas pipeline to Poland,” Minister of Energy Arvydas Sekmokas told journalists after the government meeting.

A pipeline to Poland is in the works and a liquid natural gas terminal for imports via ship are under way. Both projects would let the country gain a greater degree of independence from Russian gas.

New technology from companies in North America means that Poland will now be able to utilize its massive oil shale reserves for gas, a feat previously impossible with old techniques. The new supplies in the country have boosted the European Union’s reserves by 47 percent.

Sekmokas also cited EU wisdom that unbundling companies would lead to greater investment of resources and lead eventually to a lower price for consumers.

Lietuvos Dujos is largely in the hands of foreign interests. At the end of 2009, the Russian state enterprise Gazprom owned 37.1 percent of Lietuvos Dujos and the German E. ON Ruhrgas International owned 38.9 percent of the company. Just 17.7 percent is owned by the Lithuanian state.

If the company is unbundled into parts, each of the owners would have equal shares of each part.

The government will start drafting the bill on the gas company so it can be heard in Seimas by autumn this year.

Gas bonanza

Meanwhile, Sekmokas announced that the country may have gas reserves in shale similar to those in Poland.

“A very preliminary evaluation shows that the geological structure in southeast Lithuania is very similar to the one in Poland,” Sekmokas said. “Of course, it is necessary to conduct research. However, in Poland this is not occurring quickly either. There are huge prospects in being able to provide gas for us. Even in Poland those examinations have not been conducted yet, and the quantity of shale gas is not clear.”

It would be years before the country could produce any of its own gas from shale deposits, the minister warned. [/private_subscription 4 months] [private_subscription 1 year]lot of vertical ownership structures within the company, which could streamline the implementation of key projects.

“Changes to the Gas Act will solve two main problems. The first thing: a breakdown of vertically integrated companies in the supply of transmission and network management. The second objective: the strategic implementation of projects, specifically the liquefied natural gas terminal and construction of the gas pipeline to Poland,” Minister of Energy Arvydas Sekmokas told journalists after the government meeting.

A pipeline to Poland is in the works and a liquid natural gas terminal for imports via ship are under way. Both projects would let the country gain a greater degree of independence from Russian gas.

New technology from companies in North America means that Poland will now be able to utilize its massive oil shale reserves for gas, a feat previously impossible with old techniques. The new supplies in the country have boosted the European Union’s reserves by 47 percent.

Sekmokas also cited EU wisdom that unbundling companies would lead to greater investment of resources and lead eventually to a lower price for consumers.

Lietuvos Dujos is largely in the hands of foreign interests. At the end of 2009, the Russian state enterprise Gazprom owned 37.1 percent of Lietuvos Dujos and the German E. ON Ruhrgas International owned 38.9 percent of the company. Just 17.7 percent is owned by the Lithuanian state.

If the company is unbundled into parts, each of the owners would have equal shares of each part.

The government will start drafting the bill on the gas company so it can be heard in Seimas by autumn this year.

Gas bonanza

Meanwhile, Sekmokas announced that the country may have gas reserves in shale similar to those in Poland.

“A very preliminary evaluation shows that the geological structure in southeast Lithuania is very similar to the one in Poland,” Sekmokas said. “Of course, it is necessary to conduct research. However, in Poland this is not occurring quickly either. There are huge prospects in being able to provide gas for us. Even in Poland those examinations have not been conducted yet, and the quantity of shale gas is not clear.”

It would be years before the country could produce any of its own gas from shale deposits, the minister warned. [/private_subscription 1 year]

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