According to the 2008 BP Statistical Energy Survey, Lithuania consumed an average of 61.36 thousand barrels a day of oil in 2007, 0.07% of the world total and a change from 2006 of 2.24 tbpd. Lithuania is a net oil importer, relying chiefly on Russia for its supply. According to the 2008 BP Statistical Energy Survey, Lithuania had 2007 natural gas consumption of 3.79 billion cubic metres, 0.12% of the world total. Lithuania and the Baltic Sea region are entirely dependent on imports for their natural gas consumption.
Lithuania's port of Butinge (completed in 1999) is a key transit location for Russian oil exports.
The oil sector has been functioning for many years now in a market economy environment and is nearly integrated into the market of European countries. The oil sector has four oil extraction companies operating as well as the oil refinery and transportation company Mažeikiu Nafta AB, the petroleum product transhipment terminal Klaipedos Nafta AB and more than 350 companies trading in petroleum products.
The share of petroleum products in the primary energy balance amounts to 26 per cent of the total amount of resources.
On the eve of Lithuanian EU integration intense and effective work was done to implement the directives regulated by EU legislation in the areas of environment, improvement of petroleum product quality and implementation of the programme for accumulating the stock of state petroleum products and crude oil. In order to ensure the measured stocking, management and consumption control of petroleum products and state stock of crude oil, in 2002 the Lithuanian Parliament (Seimas) adopted the Law on State Stocks of Petroleum Products and Crude Oil. In 2003, the implementation of this law resulted in the accumulation of 60 per cent of the entire planned amount of petroleum product stocks. This means that at any time Lithuania has 60-day advance stocks of petroleum products consumed domestically.
The balanced and effective operation of Mazekiu Nafta AB is of utmost importance to the Lithuanian economy. In 2003, the first stage of modernisation of this company was wrapped up with investments totalling 110 million dollars being made. After the company was upgraded the amount of pollutants emitted into the atmosphere was reduced and the quality and ecologic indicators of light fuel oil products were brought up to the level of the indicators set forth by EU directives. These products will be able to compete with their counterparts produced in European countries.
