There is a sufficient gas quantity available for this heating season. There are no concerns of gas shortage by the end of the heating season. There is enough gas for the JSC “Latvijas Gāze”, the JSC “Latvenergo”, and other market players alike. In the next three months there is nothing to worry about at all. Work is currently in progress to ensure natural gas injection in summer for the next heating season. The possibility of not receiving gas is out of question – in one way or another, Latvia will receive gas in the summer season.

The Latvian gas supply system was built during the Soviet era, and the infrastructure is vast for the needs of Latvia and technically stable. The connections with Finland and Poland built in the recent years make it theoretically possible to diversify gas supply, but, of course, so far natural gas has been essentially supplied from Russia.

As concerns the need to build a liquefied natural gas terminal in Latvia, it would mean enormous costs that reflect in the gas price. In theory, another liquefied natural gas terminal is possible, but all consumers would then pay for it, as the hundreds of millions invested in the new infrastructure would weigh heavily on the gas price.

At the same time, investments are needed in the pipeline system between Lithuania and Latvia to increase the pipeline capacity, as the Klaipeda terminal’s capacity is already big. The world cannot function under the current gas prices, so the market should calm down unless some emergency situation occurs. 

The Klaipeda liquefied gas terminal has a capacity of 40 terawatt hours (TWh) per season, while Lithuania consumes 20 TWh, Latvia – 10 TWh, and Estonia – 5 TWh per season. Last year, gas from Russia accounted for 20% of gas discharged at the Klaipeda terminal.

On behalf of the JSC “Latvijas Gāze”,

Chairman of the Board

Aigars Kalvītis

On the JSC “Latvijas Gāze”

Latvijas Gāze is one of the leaders of the Baltic energy industry.

Our goal is to consolidate the leading position of the Latvijas Gāze Group in the Latvian and Baltic energy market by becoming the customers’ first choice among natural gas suppliers and providing the most reliable natural gas supply for the entire region.

The wholesale and sale of natural gas to business customers is carried out in Latvia, Lithuania and Estonia. Following the opening of the Finnish gas market on January 1, 2020, Latvijas Gāze has successfully started natural gas trading in Finland as well. In the household segment, Latvijas Gāze is the biggest and most prominent natural gas trader in Latvia.

After Latvia regained its independence in 1991, a joint state-owned company “Latvijas Gāze” was established by merging the Latvian gas infrastructure and institutions. The privatisation of the company was commenced in 1997 and completed in 2002. Since February 15, 1999, the shares of the JSC “Latvijas Gāze” have been quoted on the Nasdaq Riga stock exchange. Taking into account the requirements of the European Union for the establishment of the natural gas market and the expiry of the privatisation agreement between the state and the shareholders of Latvijas Gāze, the unified transmission and storage operator JSC “Conexus Baltic Grid” was separated from Latvijas Gāze in early 2017, followed by the separation of the distribution system operator JSC “Gaso” on December 1, 2017.

Contact information:

Sandra Joksta

investor.relations@lg.lv

phone + 371 67 374 369