Baltic Benefits: Polish Gas for Lithuania

They’re two nationalities that go way back, both with coastlines on the Baltic Sea.

The Estonian Free Press reports on how Poland is offering to help wean Lithuania off of gas supplies from Russian energy behemoth Gazprom, at a time when many in Europe are looking to decrease their energy dependency.

First, they would have to construct a 360 kilometer-long Baltic pipeline from Poland to Lithuania.

Poland’s Gaz-System and Lithuania’s Lietuvos Dujos, the countries respective energy enterprises dealing with natural gas, are hammering out the details to construct a pipeline between their countries – they may sign an official letter of intent soon, perhaps this summer. The head of Gaz-System says a feasibility study is needed and that the two partners have applied for funding from the European Commission.

Although a Baltic gas pipeline could prove expensive, but EU President Jose Manuel Barroso has recently mentioned possibilities for the Union to co-finance the project; Lithuania reports that it has also received EC assurances.

On the Lithuanian side, a dirty little secret could hamper the country becoming less dependent on Russian natural gas: namely, one third of Lietuvos Dujos is owned by Gazprom. The head of Lietuvos Dujos has called the project “a poor commercial decision,” but Lithuania’s government looks like it may have succeeded in persuading the energy firm.

Lithuania could reportedly have about half of its natural gas needs met through imports from Poland. Initial deliveries from Poland could total 2 billion cubic meters, which was about three-quarters of Lithuania’s gas consumption in 2009.

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