Energy, Estonia, Gas, Legislation, Lithuania

Estonian Competition Authority granted the permission to Litgas. The permission enables the company to trade natural gas in Estonian market without an additional license.

"This opportunity will allow the company to get closer to potential customers, who until now had to take care of the transportation of natural gas from the Estonian and Latvian border. This is great facilitation to us and means that we can move forward faster," General Manager of Litgas Dominykas Tuckus said.

Litgas submitted the request in January. Granted permission will allow the company to engage in activities from the date of reception.

Litgas is one of the first companies in Lithuania, which has already signed a contract with Latvijas Gaze to transit natural gas through Latvia to Estonia. The company already supplies natural gas Estonian Alexela Group company Reola Gaas from beginning of February, and it will start supplying gas to one of the largest natural gas consumers Estonian Eesti Energia and electricity production and supply company, VKG Energia, which belongs to the largest Estonian petroleum and chemical products manufacturers Viru Chemical Grupp from March.

"There are ongoing discussions with other potential customers and we are expected to sign new contracts," said Tuckus.

In total, the company expects supplying up to 30 million cubic meters of natural gas to Estonia in 2015.

Litgas has 15 non-binding master trade agreements with companies supplying approximately half of world's LNG and also has possibilities to buy natural gas from other Lithuanian importers.