Rivalry runs high in Lithuanian gas business

VILNIUS (BNS) - A new natural gas supplies company has been set up in
Lithuania in what the press is calling an attempt to oust the
country's top industrialist, Bronislovas Lubys, from the profitable
gas business.

According to the daily Lietuvos Rytas, Itera Lietuva will replace
IteraLit, a company in which persons close to the president of the
Lithuanian Industrialists' Confederation control 25 percent of shares.

IteraLit was established in late 1998.

Itera International Energy, a U.S. company that does much of its
business in Russia, and Antanas Bosas, one of the managers of the
West Lithuanian Industry and Finance Corporation, founded the new
company.

The corporation and Russia's gas giant Gazprom co-own Stella Vitae, a
joint Lithuanian-Russian venture which sells 75 percent of the
natural gas consumed in Lithuania.

Itera Lietuva has already concluded a contract on gas supplies with
Itera which plans to sell 600 million cubic meters of gas in
Lithuania this year. Of this amount, only a quarter will go to
IteraLit which will supply gas to power facilities in Vilniaus and
Kaunas. Itera Lietuva participated in a tender for a contract to
supply 60 million cubic meters of gas to gas company Lietuvos Dujos
in 2000, offering to sell gas at the lowest price, 308 litas ($77)
per 1,000 cubic meters.

Its rivals, the state-owned Lietuvos Dujos and Stella Vitae, offered
to sell gas at 312 litas and 316 litas respectively.