Tuesday , April 20 2021

Senedd – reforms to liberalize the gas market

Seimas begins discussions on how to stimulate competition in the natural gas market and increase the liquidity of the gas exchange market.

The Seimas adopted reforms to the three laws – the LNG terminal, the Heat and Energy Market on Thursday, after December 11th – and will continue to be considered on December 11.

It is intended to abolish the obligation for large-scale controlled energy producers to buy gas from the company that imports "Litgas" as a matter of priority and will force them to buy part of the gas on the exchange stock.

Producers, who use 50 GWh or more gases per year, will have to buy at least half of them by GET Baltic.

Energy Minister Žygimantas Vaičiūnas said "LITGAS" will still have to buy the necessary gas amount – 4 LNG cargo per year – to maintain the terminal, but will be able to market it on the market. Lithuanian, regional or international LNG market is the most economically advantageous way.

The price of the LNG sold by the terminal would not be regulated. According to the new model, "Litgas" activity costs and balancing, exchanging and gas storage would now not be compensated. They will have to pay for their income business.

He also announced, by improving the model of sale of the LNG terminal, the 6 million liters of around 20 million euros. Up to 14 million EUR – the additional security element for gas users will decrease over the year.

According to him, the other benefit is that Lithuanian Gas Exchange liquidity and the volume of trade will increase 4 times.

"A more active trade in the gas interchange would significantly facilitate the access of new suppliers to the Lithuanian gas market," explained the minister.

In the context of the European Union (EU), the Lithuanian gas market has classified as a disease and at the initial development level.

BNS news agencies are not allowed to reproduce information on the mass media or on websites without the written consent of "BNS" UAB.

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