Industries > Energy, Chemicals & Utilities

Energy, Chemicals & Utilities

Energy, chemistry and utilities industry includes: Production, import, export, distribution processing of trade in of energy resources raw materials and products; Production, import, export, processing of trade in chemicals and raw materials; Utilities services: collecting, removal, recycling of waste, cleaning and other services.

During recent years these industry areas develop because of increasing internal demand on energy and energy products, new foreign markets for exporting goods and increasing environmental requirements and need to develop utilities, assorting and recycling business. Bouncing oil prices in world markets and dependence on energy resources imports from Russia and other exUSSR states have impact on this industry area. Problems are caused by the complicated mechanism of regulating energy prices, monopolisation of energy suppliers. Many funds are needed to restructure and renovate energy enterprises. Lithuania is preparing for Ignalina Nuclear Power Plant closure, Latvia, which imports up to 30 % of energy from Russia, Lithuania and Estonia, is assigning major resources for renovating thermal power plants.

Development of the utilities sector is slowed down by thinking inertia, people are just starting to get accustomed to sorting waste. Big investments are needed into utility systems, land fill sites, recycling in compliance with the European standards.

Energy sector remains to be complicated and hard to predict. Prices on oil, gas and other resources are increasing together with inflation. And that could prevent the Baltic States from switching to euro in the beginning of 2007. Despite the increasing prices, demand and consumption of energy resources by industry and people is growing, especially on electricity and gas. Losses are being reduced in distribution and transportation systems. According to an EU directive, consumption of solid fuel is being decreased.

In the future energy, chemicals and utilities industries should develop further. Possible threats and risks are related with significant dependence of the Baltic States energy systems on Russia and other CIS states. The biggest part of crude oil and gas is imported from Russia. Oil can also be imported by tankers through ports, but the Baltic States are conected by gas pipes only with Russia and Belorussia. Projects of building new pipe lines have been vague so far.

Some of the biggest and most important companies in this area:

• the only one Nuclear Power Plant in the region Ignalina (Lithuania), which supplies electricity to Lithuania and the neighbouring countries;
• the only oil refinery and one of the biggest companies in the Baltic States Mažeikių Nafta (Lithuania), it supplies oil products to the whole region;
• oil products transhipment and transportation companies Ventspils Nafta (Latvia), Klaipėdos Nafta;
• oil products distribution, wholesale and retail trade companies Kurzemes Degviela (Latvia) Eesti Kütus (Estonia), Lietuva Statoil, Latvija Statoil Eesti Statoil, Neste Lietuva, Neste Latvija, Neste Eesti, Lukoil Baltija (Lithunia), Lukoil Baltija R’ (Latvia) Lukoil Eesti (Estonia), VEXOil (Latvia), Mark Oil, Reval-Oil, Saurix Petroleum (Estonia);
• the biggest producer of fertilizers and industrial chemical products in the Baltic States Achema (Lithuania), fertilizer production and trade company Lifosa (Lithuania);
• operators of electricity distribution systems Lietuvos Energija (Lithuania), Latvenergo (Latvia), Eesti Energia (Estonia), electricity distribution and supplyin companies Rytų Skirstomieji Tinklai, VST (Lithuania);
• natural gas transportation and trade companies Lietuvos Dujos (Lithuania), Latvijas Gāze (Latvia), Eesti Gaas (Estonia), Itera Lietuva, Itera Latvija, Dujotekana (Lithuania);
• shale mining companies Viru Keemia Grupp, Eesti Põlevkivi (Estonia)

Experience

The member firms of Baltic Legal Solutions comprise one of the most experienced teams of lawyers specializing in serving energy companies in the Baltic States. The lawyers of Baltic Legal Solutions provide advice to clients regarding energy source funding and development projects, energy market regulation and reforms, investment into privatisation and restructuring of heat and energy units.

We have experience in representing the monopolies regulator in disputes concerning the interpretation of applicable energy law. We have also represented and continue to represent state energy monopolies on a wide variety of aspects of their business. We are also involved in an international energy project in which each of the major Baltic electricity companies is a participant.

Links and sources:

Lietuvos statistikos departamentas www.std.lt
Centrālā statistikas pārvalde www.csb.lv
Statistikaamet www.stat.ee
Energy in Central & Eastern Europe www.eva.ac.at/enercee
Baltic Business News. Latvian Companies TOP 50 www.balticbusinessnews.com/mod/onl_news.pl?disp=top&file=Latvian_TOP_50.html
Top 500 Companies in Latvia www.konsult.lv/top500.php
Baltic Business News. Lithuanian Companies TOP 100 www.balticbusinessnews.com/mod/onl_news.pl?disp=top&file=LithuaniaTOP100.html
Baltic Business News. Estonian Companies TOP 50 www.balticbusinessnews.com/mod/onl_news.pl?disp=top&file=Est_TOP_50.html
Vilniaus vertybinių popierių birža www.lt.omxgroup.com
Rīgas Fondu birža www.lv.omxgroup.com
Tallinna Börs www.ee.omxgroup.com
Lietuvos Respublikos ūkio ministerija www.ukmin.lt
Latvijas Respublikas Ekonomikas ministrija www.em.gov.lv
Eesti Majandus– ja Kommunikatsiooniministeerium www.mkm.ee
Verslo žinios www.vz.lt
Dienas Bizness www.db.lv
Äripäev www.aripaev.ee
Lietuvos makroekonomikos apžvalga www.seb.lt/pdf/lt/lma22.pdf