Russia/Lithuania: Gas co to extend supply agreement only if prices drop

Lithuanian gas conglomerate Lietuvos Dujos said it is looking to extend its contract with Russia-based OAO Gazprom another five years as long as the company, which partially owns Dujos, agrees to lower both prices and amounts. Reports say Dujos confirmed the parties are in negotiations to extend the current contract, which expires in 2015. The contractual changes are in an effort for Dujos to cut the link between “speculative” world crude oil prices and what it actually pays for gas supplies, the company said. Eighteen percent of Dujos is owned by the Lithuanian government, and 37 percent is owned by Gazprom itself.

Full Content: Bloomberg

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