Gas development plan - Lithuania

A detailed description of the plan for the development of gas utilization in Lithuania is presented. The plan is subdivided under the headings of gas supply, gas demand, gas transmission and distribution, economy and the organization of the gas sector in the country. The first phase of the project has been undertaken by a Danish firm in cooperation with the Lithuanian firm Lietuvos Dujos. The first aim was to clarify the problems that will arise in connection with this joint venture on developing the use of gas in Lithuania, focusing on existing gas supply and market conditions, the current flow control and metering and economic constraints. The organization of the gas sector in the country as it stands today is described and possible models for its future organization are discussed in addition to a strategy of implementation. Possible development trends are outlined and maximum/minimum demand scenarios are suggested. Subjects and areas related to the gas sector in Lithuania are identified for further investigation in the next phase. It is stated that Lithuania is at present undergoing a fast transformation towards a market economy and that the transfer of foreign currency has been liberalized. Only the pipeline from Minsk to Vilnius is open at present and provides the total supply of natural gas to Lithuania and Kalingrad, controlled by the Russian gas company, Lentransgas, on the basis of a gas purchase agreement regulated on a yearly basis. Other possible supply sources are the Danish part of the North Sea and the Norwegian offshore fields. (AB)