Energy & Utilities Experience

The Energy & Utilities Practice portfolio involves a great many assignments from international and local companies. The team advises major public and private energy and gas companies such as Alpiq, Eesti Gaas, Fortum Power & Heat, Gaasienergia, Gasum, IBERDROLA Engineering and Construction, Lithuanian Energy, Lotos Petrobaltic, Statoil, as well as national regulators. A selection of significant cases is briefly described below.

• ELECTRICITY

  Advising national energy company Lithuanian Energy on electricity trading in Lithuanian and Latvian jurisdictions. Services included analysis of market operator activities and possibilities to establish a trading platform in Latvia. SORAINEN represents the client in dispute resolution cases in Lithuania, advises on restructuring and spin-off of its group companies and assists on other energy and heat related matters.

  Assisting a major electricity company active in European markets in establishing a subsidiary and launching trading activities in Lithuania. Services included obtaining licences and permits, negotiating electricity supply, balancing and use of grid agreements.

  Advising the major market player in Eastern European and Ukrainian coal production, power generation and distribution markets on cross-border electricity trading. Advice included analysing the electricity supply and purchase possibilities plus preparing electricity trading schemes on the Lithuanian-Belarusian border.

  Assisting Alpiq, a major European electricity company, in launching its local activities in Lithuania.

  Advising a large Estonian cellulose and paper manufacturer also producing heat and power in tense negotiations with the major Estonian energy group and a large foreign energy trader in preparations for an electricity trading arrangement. Assisting the client also in renewable energy projects.

  Advising Hitachi-GE Nuclear Energy, a consortium of Japan's Hitachi and the US's General Electric, announced as winner of a Lithuanian Government tender to construct, operate and decommission the new Nuclear Power Plant in Visaginas, Lithuania. Advice covers a wide range of legal issues such as nuclear energy, electricity, construction, environment, waste management, licenses and permits. This is the largest investment project in the Baltic States since they regained independence in the early 1990s. The Visaginas Nuclear Power Plant is expected to start operations in 2020.

• GAS & LNG

  Advising Eesti Gaas, Estonia's main natural gas wholesaler and retailer, in various commercial and regulatory matters: from successful commercial price-negotiations and negotiations with the market regulator to representing the client in administrative and court proceedings on pricing of natural gas plus advising the client in the legislative process.

  Advising Gaasienergia, a member of the Gasum Group, a major Estonian natural gas provider, in concluding a take-or-pay gas supply agreement with a major customer plus negotiations with the market regulator over alleged dominant position and pricing policies. Assisting the client also in drafting and approving standard terms for natural gas distribution and natural gas sales with the Estonian Competition Authority.

• HEATING POWER PLANT CONSTRUCTION & MODERNISATION

  Advising IBERDROLA Engineering and Construction, a world leader in the energy engineering sector, on construction of a combined-cycle gas turbine power plant in Lithuania. Services included public procurement advice, drafting and negotiating a FIDIC (International Federation of Consulting Engineers) contract and various supply agreements, obtaining licences and permits. With a total value of over EUR 300 million this was the largest construction project in the Lithuanian energy sector in recent years.

  Representing Fortum Power & Heat, a major electricity and heat power production and distribution company in the Nordic and Baltic countries, in complex national and international procedures and disputes, such as advising on acquisition of the heat operations of Vattenfall in the Baltics and successful representation of the client in constitutional review of abolition of co-production subsidies. Advising the client also in a complex administrative procedure on approval of heat production and distribution tariffs for the second largest city in Estonia.

  Representing and advising Enerstena, a major Lithuanian specialist in assembling, insulating and plating works for steam, water heating and heating plants. Services included assisting the client in EU-financed public procurement projects and representation in dispute resolution cases in the Lithuanian courts.

• OIL

  Advising one of the largest oil companies in Central and Eastern Europe on acquisition of a controlling shareholding in the largest oil extraction group in Lithuania. Services included advice on specific regulation of the oil extraction market, licensing and other regulatory issues. This was the largest acquisition by value in Lithuania in 2010.

  Advising Statoil, an international energy company with operations in 34 countries, on acquisition of a license for the wholesale trade of bio-diesel in Lithuania and representing Statoil’s interests at the Lithuanian Ministry of Energy.

• RENEWABLE ENERGY & EMISSIONS TRADING

  Advising Naujoji energija, a Lithuanian company developing, constructing and operating wind park projects, and its shareholders on sale of its 40 MW capacity onshore wind farm to Estonian investment fund Freenergy and Scandinavian energy company Vardar Eurus, including complex advice on land development issues.

  Assisting a major Latvian company operating in the energy sector on various issues related to participation in the European Greenhouse Gas Emission Trading Scheme.

  Advising one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world in purchasing Assigned Amount Units (AAU) from Estonia and in exchanging AAU's for innovative battery products.