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* To supply power link between Sweden and Lithuania
* Order is ABB's second largest order this year
* Helps link Baltic states to western power markets
* Shares rise 1 pct, outperform Swiss index
(Adds details, background)
ZURICH, Dec 20 (Reuters) - Swiss engineering group ABB ABBN.VX has clinched an order worth some $580 million, its second-largest this year, from Sweden's Svenska Kraftnaet and Lithuania's LITGRID Turtas AB, linking the Nordic and Baltic electricity markets.
ABB will design, engineer and supply two 700 megawatt converter stations, two 300 kilovolt underwater cables, each 400 kilometres long, as well as land cables in Sweden and Lithuania, the group said on Monday.
The news comes as the Baltic states seek to increase their energy sources and decrease dependence on Russia.
ABB said it expected the project, which will be supported by European Union funding, to be completed by the end of 2015.
ABB delivered the Estonia-Finland Estlink, the first interconnection between the Nordic and Baltic energy markets, in 2006.
At 1411 GMT, ABB shares were trading nearly 1 percent higher, outperforming a slightly stronger Swiss market .SSMI.
Lithuania's grid operator had already said on Friday that ABB would produce and install a 300 kilowatt cable for the NordBalt power interconnection in an order worth 270 million euros ($355.3 million). This accounts for one part of the overall contract. [ID:nLDE6BG0NZ] (Reporting by Katie Reid; Editing by Louise Heavens) ($1=.7599 euros)