"The first stage is the prequalification stage and we will take part in it. We will decide whether or not to participate further when we know what the initial price level is," Lietuvos Energija Chairman and CEO Dalius Misiunas told on Wednesday.
"There are no price indications yet. There will be some following the prequalification, but they will be confidential," he added.
Gazprom has announced that the auction will be held on Mar. 15, 16 and 17, with Mar. 8 set as a deadline for submitting prequalification applications.
Up to 560.6 million cubic meters (mcm) of gas will be offered, of which up to 476.6 mcm will be destined for Lithuania.
Misiunas said the amount of gas to be offered for Lithuania was realistic and sufficient.
"This is realistic. There will be definitely no shortage," he said.
Lithuanian companies this year could purchase around 700 mcm of gas from Gazprom, or they could buy that amount of gas from Norway's Statoil under short-term contracts.
Litgas is the only Lithuanian company that has a long-term contract with Statoil. Kauno Termofikacijos Elektrine (Kaunas Combined Heat and Power Plant, or KTE), which does not use much gas, is the only that has such a contract with Gazprom.
Other major Lithuanian gas importers would not comment on whether or not they will participate in the auction, saying that they do not yet know the terms.
Litgas estimates that Lithuania will consume up to 2 billion cubic meters (bcm) of gas this year, down from around 2.2 bcm in 2015.
Lietuvos Duju Tiekimas, Litgas and the fertilizer manufacturer Achema this year will purchase around 1.35 bcm of liquefied natural gas from Statoil, which will be delivered by tankers to the Klaipeda LNG terminal.
