Agreement with a dairy processing company started gasification of another Lithuanian town: Tauragė


Lithuanian gas distribution system operator Lietuvos dujos that belongs to the state-controlled energy company group Lietuvos energija plans to connect Tauragė to the distribution gas pipeline next year. Tauragė will be the 42nd municipality in Lithuania that was connected to a gas pipeline. The first gas consumer with whom Lietuvos dujos signed an agreement on connecting to the gas distribution system is one of the largest dairy processing companies in Lithuania – Vilkyškių pieninė. Gas supply to the dairy is anticipated to begin in the fourth quarter of 2016.

This project corresponds to the strategic goals of Lietuvos dujos: to connect new users to gas pipelines and to safely and reliably distribute natural gas to consumers. The company is interested in every new consumer and gas pipeline operation and development, especially when it helps to improve the investment climate in Lithuanian regions.

“By connecting Tauragė to the gas network, we hope to encourage region development, contribute to job creation, attract better specialists to the region. By increasing Tauragė's economic attractiveness, we simultaneously improve the social situation in the area. I hope that the new gas consumer, in cooperation with the local self-government, will be able to attract other investors, since successful investments are followed by new companies, which will increase gas consumption in the region,” says Liudas Liutkevičius, Chairman of the Board and Chief Executive Officer of Lietuvos dujos.

At the end of June, the National Commission for Energy Control and Prices confirmed the Tauragė gasification investment project and allowed building a distribution pipeline to Tauragė. In the nearest future, public tender procedure will begin in order to select a contractor and to start the gas pipeline design work. It is anticipated that the gas pipeline construction will begin is spring 2016.

By the end of 2016, a new gas distribution station will be built in Tauragė District, next to the high-pressure gas transmission system. The station will prepare the gas supplied through the transmission pipeline for distribution to consumers via the distribution gas pipeline. Almost six kilometres of distribution gas pipeline will be built to connect the gas distribution station and Vilkyškių pieninė located in Tauragė. 

“We are expanding our business, thus we have invested in the connection to gas pipelines. By implementing this project we feel we will contribute to creating benefit for the city of Tauragė. New jobs created not only by us but other businesses as well, a possibility to attract new investors to the region and increasing appeal of Tauragė industrial area has encouraged us to develop our business right here, without looking for other places” - said Gintaras Bertašius, Chief Executive Officer of Vilkyškių Pieninė.  

The building of the gas pipeline to this large investor paves the way for business development in Tauragė. “We can rejoice over the fact that the capacity of the pipeline constructed by Lietuvos Dujos will be sufficient not only for Vilkyškių Pieninė, but also for investors planning to connect to the pipeline in the future. Another reliable source of energy will expand possibilities for attracting investment to our region, as since now on we will be able to supply gas to those companies, the technologies whereof require gas. This will improve investment conditions of the city of Tauragė, stimulate the development of the entire region, at the same time creating better conditions for the creation of new jobs” - said Sigitas Mičiulis, Mayor of the city of Tauragė.

There are still some territories unsupplied with gas in Lithuania. Last municipalities connected to the gas distribution pipeline owned by Lietuvos Dujos were the municipalities of Jurbarkas (2007) and Rietavas (2008). Lietuvos Dujos has attracted an increasing number of new gas customers in recent years. In January-June of 2015, the Company connected almost 1500 new customers to its gas distribution pipelines, which is 40 percent more than during the same period of last year. Such change in trends was determined by decreased price of natural gas and increasing customer confidence in natural gas as well as the understanding that the use of this energy type is unsurpassable.

         Paulius Stonis
         Communications account manager of Lietuvos Dujos
         Mob. +370 699 34825
         E-mail: p.stonis@lietuvosdujos.lt
         www.lietuvosdujos.lt