Friday , June 2 2023

Parliament – changes in the gas market liberalization


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

Seimas has approved amendments to three laws – an LNG terminal, a heat and energy market, on Thursday after December 11 – and will continue to consider them on December 11th.

It is proposed to abolish the obligation of large regulated energy producers for the priority purchase of gas from the import company Litgas and obliges them to buy part of the gas on the stock exchange.

Manufacturers that consume 50 GVh or more of gas per year will have to buy at least half of GET Baltica.

Zigimantas Vaičiunas, the Minister of Energy, said that "LITGAS" will continue to be obliged to purchase the necessary amount of gas – 4 LNG loads per year – to maintain the terminal, but will be able to market it on a market basis in the Lithuanian, regional or international LNG market in the most economical way.

The price of the LNG sold by the terminal would be unregulated. According to the new model, the costs of the Litgas activity and the balancing, exchange and storage of gas will no longer be compensated. They will have to cover their income earnings.

He also announced that by improving the LNG terminal sales model, 6 million litas will be worth around 20 million euros. up to 14m EUR – an additional safety component for gas consumers will be reduced during the year.

According to him, the second advantage is that over the years, the liquidity of the Lithuanian gas market and the volume of trade increase by 4 times.

"More active trade in gas exchange would significantly facilitate the entry of new suppliers to the Lithuanian gas market," the minister explained.

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

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

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