VILNIUS - Lietuvos Dujos (Lithuanian Gas) announced it would build a new gas pipeline to Kazlu Ruda in the southeast part of the country.
The pipe will supply natural gas to local companies and residents, though the main consumer will be a new particle board plant being built by Vakaru Medienos Grupe (Western Timber Group), a major domestic timber and furniture group.
The 25 kilometer high-pressure pipeline from Marijampole to Kazlu Ruda would cost 9.3 million litas (2.7 million euros). It will be built by three Lithuanian companies.
"Giriu Bizonas [where the plant will be 's ed.] will need gas in June next year. Accordingly, we will seek to build the gas pipeline with the capacities of some 30 million cubic meters per year by May 20," said Rimantas Verikas, CEO of the Kaunas subsidiary of Lithuanian Gas.
Violeta Uleviciene, a spokeswoman for the Western Timber Group, said construction of the 48.7-million euro particle-board plant would begin in November. It should be completed in mid-2006.
Also, Lithuanian Gas intends to build a new 16-kilometer gas main from Siauliai to Kursenai in order to boost supply capacities to Klaipeda, Mazeikiai and other locations further from Siauliai.
In September, the company completed a 100-kilometer cross-country gas line stretching from Pabrade to Visaginas, home of Ignalina Nuclear Power Plant. The company's investments in these projects amounted to 62 million litas (18 million euros).
In December, the company will complete the 100 million litas on a cross-country gas line from Kaunas to the region of Kaliningrad.