ENTSOG GRIP BEMIP 2014-2023 / Main Report

2.5 Lithuania

ENERGY POLICY

The National Energy Strategy places strong emphasis on the importance of develop- ment of infrastructure projects oriented towards gas supply source diversification, which is expected to result in the enhancement of gas supply security in Lithuania. Out of the gas supply source diversification options available, the Strategy priori- tises the LNG terminal option as “economically the most viable option”. By the end of 2014, Lithuania will have the LNG terminal in place and, depending on how the projects are scheduled, Lithuania will also have the gas interconnection Poland– Lithuania by the end of 2018. Upon implementation of the aforesaid projects, Lithuania will achieve the goal of its gas supply diversification and create an ade- quate gas infrastructure related thereto. In the long term, Lithuania’s demand for natural gas is forecasted to decrease due to a higher share of renewables in the heat and electricity production as well as a wider application of energy efficiency technologies.

MARKET PLAYERS

The value chain of the natural gas market consists of gas supply, transmission and distribution. Natural gas is imported to Lithuania by 5 companies, including 3 gas supply companies: AB Lietuvos Dujos, UAB Dujotekana and UAB Haupas, and 2 major im- porters AB Achema and UAB Kauno Termofikacine Elektrine (Kaunas Combined Heat and Power Plant) (import mainly for own needs). In 2013, natural gas imports to Lithuania amounted to 28.1TWh. In 2013, the major gas importers were AB Achema (40%) and AB Lietuvos Dujos (37%). In 2013, AB Amber Grid transported to third parties 30TWh of natural gas. There are up to 10 companies that supply natural gas to end-consumers in Lithuania.

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8

AB Lietuvos dujos AB Achema UAB Dujotekana UAB Kauno Termofikacine Elektrine UAB Haupas

14

37

%

40

Figure 2.16: Natural gas import structure, 2013

By July 2013, the functions of the TSO were performed by AB Lietuvos Dujos. Since August 2013, the gas transmission activity has been carried out by a newly established company, AB Amber Grid. AB Amber Grid was established in imple­ mentation of legal acts provisions on the unbundling of the activity of natural gas transmission from vertically integrated company (AB Lietuvos Dujos). According to the provisions of national legislation, by October 2014 the ownership unbundling of AB Amber Grid should be accomplished. 32% of gas consumed in Lithuania is transported via distribution grids. The major gas distribution company is AB Lietuvos Dujos, which covers approx. 98% of whole gas distributed in 2012. There are 6 other distribution system operators (DSO) that provide services in individual parts of Lithuania, out of which 4 DSOs operate distribution systems connected to AB Amber Grid gas transmission system, and 2 smaller ones are connected to the gas distribution systems of Belarus and AB Lietuvos Dujos.

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Baltic Energy Market Interconnection Plan GRIP 2014–2023