Lithuania Competition Watchdog Fines Gazprom $48 mln

Posted by Joseph Keefe
Tuesday, June 10, 2014

Fine is highest ever imposed by the Lithuanian watchdog; Gazprom is Lithuania's sole supplier of natural gas. Company also faces EU competition investigation.

Lithuania's competition authority has fined Russia's Gazprom a record 123 million Lithuanian litas ($48 million), saying that the company had prevented competition in the Baltic state.

Gazprom, the world's top gas producer and supplier of about 30 percent of Europe's gas needs, is also facing a European Union investigation over suspected anti-competitive behaviour, including overcharging customers and blocking rival suppliers.

The company, Lithuania's sole natural gas supplier, breached competition rules when it refused to negotiate a deal on gas exchange with Lithuanian power producer Lietuvos Energijos Gamyba in 2012, the Competition Council said in a statement.

The power producer, a part of Lithuania state-owned energy group Lietuvos Energija, had negotiated a deal with an unidentified seller in Western Europe to buy gas from 2013 to 2015. But because the physical delivery was not possible, Lietuvos Energijos Gamyba asked Gazprom to exchange the gas the Lithuanian company planned to buy in Western Europe for volumes the Russian company delivers to Lithuania via Belarus.

Gazprom, however, refused to enter negotiations on such a deal, prompting the Lithuanian company to file a complaint with the competition authority in July 2012.

It meant that Lithuanian consumers had to pay more for electricity and heat generated by burning more expensive Russian gas, the Competition Council said.

Gazprom's actions were in breach of its obligation not to prevent customers from seeking alternative suppliers when the Russian company bought 37.1 percent of Lithuania's gas supplier Lietuvos Dujos a decade ago, the Council added.

The 123.1 million lita fine is the biggest ever issued by the competition authority, the watchdog's spokeswoman said.

Lithuanian state-owned companies last month offered to buy Gazprom's stakes in the country's gas utility Lietuvos Dujos and gas transmission company Amber Grid.

Under European Union gas market rules designed to ensure fair competition, companies that supply energy are not allowed to dominate ownership of the infrastructure.

Gazprom, which is due to hold a board meeting on Wednesday to decide on its shares in Amber Grid and Lietuvos Dujos, declined to comment on the fine.

The competition authority also said that Gazprom refused to provide it with required information, citing the decision of Russia's President Vladimir Putin to ban strategic companies from sharing information with foreign regulators. ($1 = 2.5495 Lithuanian Litas)

 

Reporting by Nerijus Adomaitis

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Pentair Opens Aquaculture Center of Excellence

Mindful that fish farming has the potential to help meet an expanding  population's need for protein in a world with increasing water constraints, Pentair announced

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Legal

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Pentair Opens Aquaculture Center of Excellence

Mindful that fish farming has the potential to help meet an expanding  population's need for protein in a world with increasing water constraints, Pentair announced

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Finance

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Pentair Opens Aquaculture Center of Excellence

Mindful that fish farming has the potential to help meet an expanding  population's need for protein in a world with increasing water constraints, Pentair announced

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Energy

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

Statoil Awarded Licenses Offshore Nicaragua

Statoil informs it was today awarded four licenses offshore the Nicaraguan Pacific, covering an area of about 16,000 km2 in the largely unexplored Sandino Basin.

LNG

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

Crowley’s 2nd LNG ConRo Ship Ahead of Schedule

Shipbuilder VT Halter Marine, Inc. announced construction has started early for the second liquefied natural gas (LNG)-powered ConRo ship, Taíno, for Crowley Holdings, Inc.

Government Update

USS Montpelier Modernization Contract for General Dynamics

The U.S. Navy has awarded General Dynamics Electric Boat a $46.4 million contract for planning efforts in support of maintenance and modernization work on USS Montpelier,

Great Barrier Reef Kept Off UNESCO 'Danger' List

A heritage committee of the UNESCO cultural agency stopped short of placing Australia's Great Barrier Reef on an "in danger" list, but the ruling on Friday raised

Mexico Removes Bid Limit on Shallow Water Oil Tenders

Mexico's oil regulator voted on Friday to relax previously established rules on bidding terms and contracts that form the first step in an historic sector opening

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1557 sec (6 req/sec)