Ukraine to export electricity to Lithuania

Hungary-registered company UkrEnergy Trade signed an agreement with Lithuania’s Lietuvos Energija to export up to 735 mln kWh of Ukrainian electricity in 2010, according to local media reports. Lithuanian officials said the contract would help them to ensure electricity supplies after the closure of the Ignalina nuclear power plant. Yegor Samusenko: We view this news as positive for Centrenergo (CEEN). Since electricity exported to Lithuania has to be transported through Belarus, we think this contract would have a similar impact on the company as the resumption of electricity exports to Belarus at the end of June did. In July, Centrenergo’s Trypilska TPP, which is the closest TPP to the Belarusian border, increased its output by ~150 mln kWh mom. We think the Lithuanian contract would add about 600 mln kWh (4-5%) to Centrenergo’s 2010E output, which would increase its capacity utilization by 1.5 pp.