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2014.05.13 11:31

Lithuania’s natural gas prices to drop 20 percent July 1

DELFI EN | The Lithuania Tribune2014.05.13 11:31

(BNS) Natural gas prices will drop 20 or more by July thanks to agreements between Lietuvos Dujos and Russian gas supplier, Gazprom, Prime Minister Algirdas Butkevicius said Tuesday on LRT Radio.

 (BNS) Natural gas prices will drop 20 or more by July thanks to agreements between Lietuvos Dujos and Russian gas supplier, Gazprom, Prime Minister Algirdas Butkevicius said Tuesday on LRT Radio.

“Calculations are currently being made because Lietuvos Dujos and Gazprom have signed a new agreement [effective] until Jan. 1, 2016.  The agreement provides a new formula, which requires certain calculations take into account changes to the [US] dollar exchange rate,” said Butkevicius.

“We hope that we’ll have the final figures by [May] 20 to 25 and will then submit them to the price commission, which will analyze those proposals and make its decision by June 1. The price would take effect on July 1. I can say that the price will fall at least by 20 percent,” he said.

Later, Butkevicius cautioned, “I haven’t seen final estimates yet. I can’t say with confidence today. Let’s wait for another two to three weeks.”.

The National Control Commission for Prices and Energy will also consider liquefied natural gas (LNG) terminal infrastructure costs and other price factors.

No changes on arbitration with Gazprom

Butkevicius also said Lithuania’s arbitration claim, worth over 4 billion litas (EUR 1.16 b), filed in Stockholm against Gazprom is not among the issues negotiated with the Russian gas giant, adding that he has no information as to when the arbitration court will hold a hearing or make its ruling.

“Speaking about the arbitration, I can reassure everybody that there are no changes. This issue is not being discussed at the moment. A law firm that was hired during the time of the Conservatives  that has signed an agreement with a British law firm in charge of this issue. I think this issue should be discussed in the autumn. Today we don’t even have information as to when the Stockholm arbitration court will hear this issue,” he said on LRT Radio.

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