Vilnius' VST to burn heating oil after govt decision

However, the permit will only be granted once the government updates the existing list of criteria for extreme events, the capital's Vice Mayor Valdas Benkunskas says.

In his words, the changes will allow declaring an emergency at the municipal level in the event of economic circumstances, such as a rise in gas prices.

"The (government - BNS) resolution allowing municipalities to declare a heating emergency on the basis of an economic factor will allow us to obtain a pollution permit, to use an alternative fuel (heating oil - BNS)," Benkunskas told BNS.

The government is expected to update the criteria list on Wednesday. The Energy Ministry suggests adding a sharp rise in heating prices when the estimated Dutch TTF gas index is twice as high as the regulator's calculated five-year gas price average, which would allow switching to a different fuel type urgently.

In early October, a fifth of the heating oil needed for the heating season arrived at the Lithuanian port of Klaipeda, bought by VST from Glencore Energy, the UK arm of Glencore, the world's largest commodity trading group. KN currently stores it in Klaipeda but once the permission is granted, it will be transported by rail to Vilnius.

Gerimantas Bakanas, CEO at VST, told BNS the contract for the purchase of the remaining part of the needed heating oil will be signed over the upcoming two to three weeks.