Today, energy has become one of the most important issues of the national, EU as well as international agendas. Situation in the global energy sector has been very dynamic. We have to answer to ourselves how the growing energy demand will match with depleting traditional energy resources in Europe, how we are going to deal with the rapid climate change, sky rocketing energy prices and lack of supply options. So, we have a lot of challenges ahead.

Just a few months ago, the Parliament of Lithuania approved a new energy strategy. It outlines the main principles in the field of energy policy for almost 20 years period (till 2025). The main goals of the Strategy are to ensure a reliable energy supply to the Lithuanian consumers from the diversified sources, aiming for permanent growth and competitiveness of Lithuania’s economy. One of the main goals set in the strategy is to minimize dependency of Lithuania on monopolistic suppliers; therefore, diversification of primary energy sources (energy mix) is a priority.

As to the diversification, I would like to stress that our words are not targeted specifically against any specific company or specific country. The aim to diversify supply routes is a natural need for any reasonable entrepreneur or person in general. Everybody should feel the need to diversify risks and “not to place all the eggs in the same basket”.

But diversification goal could not be achieved by simply improving infrastructure inside the borders of a separate country. All major projects require joint efforts of several countries. These projects create splendid opportunities for strengthening cooperation on regional level.

For example in gas sector, our Government proposed to explore possibilities of constructing LNG (liquefied natural gas) import terminal for the needs of the three Baltic States. The Ministry of Economy has already started consultations with Latvian and Estonian authorities on preparation of feasibility study on LNG terminal.

Another option we need to explore at length is interconnection of our gas networks with Poland. We, together with Prime Minister of Poland Mr. Kaczyński, have already signed a Communiqué on Energy Cooperation which, among other things, provides for a feasibility study on gas networks interconnection. Our Ministries of Economy have been currently holding consultations on the subject.

I would encourage our colleagues from Latvia and Estonia to join the mentioned feasibility study. We believe that the interconnection of Lithuanian and Polish gas pipelines should become an issue of European interest. I very much appreciate the possibility of the Commission’s financial contribution to the feasibility study. The diversification of gas supply and integration of isolated gas markets to the European gas network should be considered our priority. We have to make our common efforts for this issue to be properly addressed at EU level.

Electricity interconnections with other EU countries are also of significant relevance. Lithuania has a strong interest to build the electricity bridge between Lithuania and Sweden – SwindLit. Taking into account the launch of Estlink, which is a successful example of our regional cooperation, the implementation of SwindLit project could lead towards the creation of a viable regional electricity market in the Northern Europe. A feasibility study of the Lithuanian-Swedish electricity bridge is already under way. The study is being prepared by two companies, “Lietuvos energija” and “Svenska Krafnaat”, but I think that on the political level, we would all support other companies from our region joining this important commercial project, too.

We are delighted that a power bridge with Poland has been included among four priority infrastructure projects that will have European coordinators appointed; we hope that a suitable candidate to this important post will be found as soon as possible. Establishment of the project development company is planned in September. Successful implementation of this project will highly contribute to the integration of the Baltic electricity sector into the EU electricity network.

But in order to fully complete integration of our electricity sectors into the common EU electricity network, we have to start integration into the operation system of the Western Europe and join UCTE. It should be our common strategic goal. I believe that it is a good idea to jointly address the President of the European Commission for support in this field. I am convinced that this common address would allow us to ensure both political and financial support form the European Commission. It would also help our companies continue their practical preparation in this regard.

And even today when we plan new generation facilities, UCTE issue is being taken into consideration. The draft Law on the New Nuclear Power Plant in Lithuania establishes a requirement for the new plant to be able to operate in UCTE environment.

The Law on the New Nuclear Power Plant is currently under intense discussions in the Parliament of Lithuania. We expect it to be adopted in a two or three weeks time from now. The New Nuclear Power Plant project is structured as a commercial one, but it has a huge strategic importance for the whole region. It will help us diminish dependence on natural gas and to secure the diversification of electricity supply.

The idea of the new nuclear power plant was officially raised just a little bit more than a year ago. This project is still in a very early stage. At this moment in time, we do not know how many and how large reactors will be that we are going to build. An international tender shall answer these questions. And a lot of work and effort will be needed from all of us to finalise this project successfully. According to Lithuania energy strategy, the new nuclear power plant should be operational from 2015. I do believe this ambitious timeframe is still reasonable.

In more global terms, I would like to stress that nuclear energy is one of the most realistic and commercially feasible alternatives to the traditional fossil fuels and could be instrumental in addressing the challenges of climate change. Lithuania opts for nuclear energy because it is crucial for our energy security and, dare I say it, our national security.

And finally, a few words about oil sector. Despite our efforts, almost a year has already passed since the disruption of oil supply via the “Druzhba” pipeline, but Russia has not provided for any official information regarding this accident nor the timetable for the restoration of supplies so far. Latvia has been facing the same problem even longer. It shows the lack of transparency and mutual trust from the Russian side. We, therefore, need to keep addressing this matter and finding expedient solutions in the framework of the EU-Russia relations.

Moreover, we are concerned that Russia could make a strategic decision to shift oil exports, directed to Europe, from the land pipelines to sea transportation. This could lead to very negative environmental effects turning the Baltic Sea into the “new Bosporus”.

In conclusion, I would like to stress that despite the fact that energy cooperation among Baltic States is of strategic importance, we should have a broader picture in mind and strive for the common energy policy on the EU level and creation of the viable European energy market. I believe that unity and solidarity should be key words if we speak about a common EU energy policy. We have to be united by speaking with one voice with third countries. We should also consider creating a crisis management system dealing specifically with energy crisis. And it is also as issue for NATO as energy security as the part of national security in general.

The energy package, discussed at the Spring European Council, is a good basis to move forward towards meeting this goal. Now we should work together and implement what was already agreed. It is the major challenge and opportunity for us at the same time.