Gazprom, European Commission and Lithuania Meet to Discuss Lithuanian Unbundling

Gazprom Export, the European Commission and the Lithuanian government have met to discuss the unbundling of Lithuania's gas transmission and distribution networks, a statement from the Lithuanian government has said.

The meeting took place between Director-General for Energy for the European Commission Philip Lowe, Director General of Gazprom Export Alexander Medvedev and Lithuanian Prime Minister Andrius Kubilius.

During the meeting, the parties discussed the decision to unbundle Lithuania's gas supply, which includes the separation of the gas distribution and transmission networks of Lithuania. The unbundling is expected to take place by 2014.

Details of the exact nature of the discussions was not revealed in the statement, with the government statement just saying that "constructive discussions took place to address all outstanding issues."

The parties will meet again by the end of March to continue the discussions, the statement said.

Lithuania is required to unbundle its gas system due to EU competition laws which restrict the forming or continuation of monopolies of supply and distribution in any member state. Gazprom, which holds a 31.7 per cent stake in Lithuianian gas supplier Lietuvos Dujos, the main natural gas company affected by the unbundling. Lietuvos Dujos controls the transmission, distribution, sale and import of gas to Lithuania.

Gazprom or Gazprom Export had not released a statement on the discussions at the time of writing.