Gazprom submits Lietuvos Dujos bid

  • 2002-07-18
  • Agence France-Presse

The Russian gas giant Gazprom presented on July 16 an initial application to buy 34 percent of Lithuanian gas distributor Lietuvos Dujos, the Lithuanian state Property Fund said.

Gazprom plans to establish a consortium with the local company Dujotekana to participate in the privatization tender, the fund said in a statement.

Final applications have to be presented by September 11.

Under conditions of the tender, bidders must purchase no less than 25 percent of the stock in Lietuvos Dujos, and guarantee gas supply meeting 70 percent of the country's needs for a period of 10 years.

The initial price of the stake has not been announced, but local media speculate that Gazprom will pay less than the 33.6 million euros ($33.5 million) a consortium of German energy companies Ruhrgas and E.ON paid for a 34 percent stake with management rights in May.

After the tender, expected to be concluded by the end of this year, the government will hold a 24.36 percent stake in Lietuvos Dujos.