The company is the monopoly gas transporter of over 2.5 billions of cubic meters of natural gas for the country and the Russian Kaliningrad enclave and the supplier to over 510 000 customers. It is trading profitably after introduction of an EU compatible tariff regime.
Under its mandate, BNP Paribas' role is to market this privatisation opportunity to strategic investors from the gas distribution and supply business and to advise the Government in negotiations. Shortlisting of candidates should take place before the end of the year. Investors will be invited to acquire a 34% stake in the company and conclude a shareholders' agreement with the Government, who continues to hold 58%. At a later, date 34% out of that stake will be offered to gas suppliers also under the BNP Paribas mandate.
Interest is expected to be high in this last opportunity to acquire a key stake in a state-controlled gas company in the Baltic Region. Lithuanian Gas is expected to be a major player in the development of the regional gas sector, especially as the planned closure of the country's Ignalina nuclear power plant will create opportunities for independent power producers to develop in line with the National Energy Strategy.