Russia's Kaliningrad Region to build a new gas pipeline through Lithuania

May 21, 1999 02:00 AM

The administration of Russia's Kaliningrad Region has opted to build a new gas pipeline through the Lithuanian territory.
The Region's deputy governor, Sergey Buchelnikov, and managers of the Gaz-Oil company made the decision at a meeting recently.
Building a new gas pipeline via Belarus was another option. It is planned that the new pipeline will be built along the existing pipeline which runs through Lithuania and will supply gas to a high-capacity thermal power station under construction in the Russian enclave bordering Lithuania.

Lithuania and Russia began talks on the new gas project several years ago, but it was decided later to wait for the Kaliningrad administration's decision. The technical director of the company Lietuvos Dujos [Lithuanian Gas] told that Lithuania saw no obstacles to the implementation of the project.
Gaz-Oil and the Kaliningrad-based Giprospecgaz have been working on technical and economic details in order to secure investment for the project, including work on the Lithuanian territory.
According to preliminary estimates released earlier, the new gas pipeline could cost some $ 220 mm. The idea of building a new gas pipeline to Kaliningrad has been put forward by the Russian gas giant Gazprom, which wants to boost gas supplies to the Region from 0.6 bn cm to 3 bn in the year 2010. Lithuania is also interested in the project, hoping to expand its local gas supply network and receive extra income and gas supply guarantees.

Source: BBC via Iinoil
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