Lithanian energy group Lietuvos Energija announced it will merge its two natural gas supply daughter companies: Litags and Lietuvos Duju Tiekimas.
The merger will create one gas supply company in Lithuania, which will seek to expand its activities in the Baltic region. The plans for the merger have already been approved by the Finance Ministry (shareholder of Lietuvos Energija).
Following the merger, the company will be named Lietuvos Duju Tiekimas. According to plans, the company will also take over the status of the designated LNG supplier.
Litgas will be used as a trademark name in international activities carried out by Lietuvos Duju Tiekimas. Litgas has already gained considerable experience in international markets.
Commenting on the decision, Dr. Dalius Misiunas, CEO of Lietuvos Energija, said: “The merger of two natural gas supply companies controlled by the same shareholder is a logical decision. This will open new opportunities for making the operation of the company more effective and will allow us to offer new services and products in the Lithuanian market and the markets of the neighbouring countries in a more flexible manner. I believe the unified company will be able to compete in the region better.”
Following the merger, Lietuvos Duju Tiekimas will guarantee the designated supply of natural gas via the Klaipeda LNG terminal, expand natural gas trading capacity in the region, and develop small scale activities of LNG supply in cooperation with Statoil.
Secure gas supply
“The only thing clients care about is reliable and secure gas supply and affordable gas price. We now can choose ourselves where to buy gas,” Misiunas added.
The merger is expected to be finalised by the end of this year.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/06052015/litgas-to-merge-with-gas-supply-company-696/