Lithuania may ask refiner AB Mazeikiu Nafta to invest in a new nuclear plant, the Baltic News Service reported, citing the Economy Ministry. Poland's government, along with Baltic energy companies AB Lietuvos Energija, Latvenergo and Eesti Energia, plan to build a new atomic plant in Lithuania at Ignalina, the biggest nuclear project in eastern Europe for four years.
Our view: We do not see it as a good investment target for Mazeikiu as in our view the power plant has nothing to do with the core business of the company. Currently though having big distillation capacity Mazeikiu refinery is low-complex and not energy efficient, thus we would rather welcome the investments in downstream business.