Gazprom finalized the deal on Lietuvos dujos’ stake
Alexander Ryazanov and Povilas Milasauskas
Today, in the city of Vilnius (Lithuania’s capital), Gazprom finalized the deal to acquire a 34% stake in the Lithuanian-based Lietuvos Dujos company.
Povilas Milasauskas, Director General of the State Property Fund of the Republic of Lithuania, Alexander Ryazanov, Deputy Chairman of Gazprom’s Management Committee and Eike Benke, Ruhrgas AG’s Vice President signed Lietuvos Dujos’ Shareholders’ Agreement.
Under the terms of the company’s privatization, Gazprom and Lietuvos Dujos prolonged the long-term Agreement on gas deliveries to Lithuania till 2015. Gas will be delivered to Lithuania at a price previously coordinated by the parties and linked to the prices set for alternative types of fuel.
“Gazprom’s participation in Lietuvos Dujos and other Baltic gas companies will not only enhance their operating efficiency but also will serve as an additional factor in stabilizing further development of the whole region’s gas market. This event may serve as a vivid example of civilized mutually advantageous cooperation in the gas business for other countries, as well,” – stated Alexander Ryazanov, Deputy Chairman of Gazprom’s Management Committee, at the Shareholders’ Agreement Signing Ceremony.
Lietuvos Dujos’ major business lines are gas procurement, transmission and distribution in the Lithuanian Republic. The company operates 1,630 km of high-pressure gas pipelines, 1 compressor, 1 gas metering and 58 gas distribution stations.
Lietuvos Dujos was privatized in 2 phases. At the 1st phase 34% of Lietuvos Dujos’ stake were acquired by the strategic foreign investor the German Ruhrgas AG company. Another 34% of Lietuvos Dujos’ stake were later on purchased through a tender by the independent gas supplier to Lithuania, Gazprom.
For the time being, Lietuvos Dujos’ share capital is divided in the following way: 34% are owned by Gazprom, 35.7%, by Ruhrgas, 24.36%, by the Lithuanian Government and the rest are under control of other investors.
The Baltic States are one of the most important regions Gazprom’s Investment strategy targets at. The Company has so far become gas supplier and shareholder of the Estonian Eesti Gaas and the Latvian Latvijas Gaze companies.
The Lithuanian gas transmission system is closely linked to the Russian GTS. Gas is delivered via Lithuania to the Kaliningrad region.
In 2003 Gazprom delivered 3.012 bcm of gas to Lithuania, to be expectedly increased to 3.160 bcm in 2004. In 2003 the Kaliningrad region received 569.76 million cubic meters of gas transited via Lithuania, against the 2004 target of 640.5 million cubic meters.
Information Directorate, OAO Gazprom