Contracts

To conclude a Natural Gas Transmission Services Contract the potential system user must submit a request to conclude the Transmission Contract, no later than 2 months prior to the first capacity booking. After submitting the request, any amendments to the applicant's details or documents must be promptly communicated to AB Amber Grid, but no later than three working days.

AB Amber Grid, upon receipt of the request for a Natural Gas Transmission Services Contract, shall assess data and documents specified in the request (their adequacy, validity, accuracy), carry out due diligence and within 14 calendar days from receipt of the request:

• offers to conclude a Natural Gas Transmission Service Contract;
• has the right to request to specify / supplement the information or documents referred to in the request by providing explanations and justification for such a request;
• after the identification of risks, shall request the potential user of the transmission system to provide the latest financial statements;
• before entering into the Transmission Contract, the Network User shall provide the TSO with a collateral for the fulfilment of obligations. Appropriate collaterals for the fulfilment of obligations deemed to be:

1. Cash deposit for transmission services and/or imbalance and/or calculated security charge funds can be paid in the form of a cash deposit to AB Amber Grid's current account:

Account No: LT637300010133756781

Bank: AB Swedbank

Bank code: 73000

SWIFT (BIC) code: HABALT22

2. Guarantees from a bank or other credit institution.

• refuses to grant the request for a Transmission Contract.

With system users concluded natural gas transmission service contract shall be an open term contract. After the conclusion of the Transmission Contract, a System User shall be entitled to book capacity, transport gas through the transmission system and perform other actions related to the use of services provided by the Transmission System Operator.

As regards natural gas supply undertakings selling natural gas at Virtual Trading Point of the natural gas transmission system  under bilateral sales contracts and/or on the natural gas exchange, with such undertakings the Transmission System Operator shall conclude a Standard Natural Gas Transmission Service Contract, establishing the gas transmission system balancing terms.

The rights and obligations of system users shall be as provided for by their respective contracts, by the AB Amber Grid Rules for Access to the Natural Gas Transmission System and by the AB Amber Grid Natural Gas Transmission System Balancing Rules . Where there are any natural gas transmission services- related complaints and/ or requests, the Transmission System Operator shall examine any such complaints and/ or requests and issue written responses there to within 30 calendar days.

After signing the contract for gas transmission services or balancing services, we also offer to sign the following agreements:

1. Agreement on the right to use the electronic transmission service booking and administration system. (mandatory)
2. Agreement on the procedure for issuing VAT Invoices for balancing gas (the Agreement allows issuing invoices on behalf of the system user when a surplus of gas is created in the transmission system);
3. Agreement on value added tax (if the system user is not a VAT payer in Lithuania).

Gas system users shall make their payments for natural gas volumes transmitted and for the gas transmission capacities booked for the reporting period according to VAT invoices. Payments shall be made by the deadline as provided for by the AB Amber Grid Rules for Access to the Natural Gas Transmission System and by the AB Amber Grid Natural Gas Transmission System Balancing Rules.

Failure to duly settle the invoices by the deadline as specified in the contract shall result in the accrual of payment penalty. Late payment penalties shall be calculated on a monthly basis.

The TSO shall have the right to request to submit appropriate security measures for the fulfilment under the following circumstances:

• If the TSO identifies changed (increased) risk due to the imbalances of a System User; and / or
• If the TSO identifies changed (increased) risk due to solvency of a System User; and / or
• A System User under the terms and conditions set out in the transmission or balancing service contract fails or delays to fulfill its obligations to pay for the rendered transmission and/or balancing services; and / or
• A System User violates the basic conditions of the contracts and / or the Access Rules; and / or
• Bankruptcy, restructuring, separation or dissolution proceedings are initiated in respect of the System User; and / or
• There are other circumstances (worsened financial situation, signs of insolvency in respect of other suppliers, other factors leading financial risks), which reasonably suggest that a System User can fail to fulfill its obligations under the contract and / or the Access Rules.
• In the event of a system user’s failure to timely settle his account for natural gas transmission services, AB Amber Grid, upon a prior notice, shall be entitled to limit or cut off gas transmission.