|Emitents||Latvijas gāze, AS (097900BGMO0000055872)|
|Veids||2.2. Iekšējā informācija|
In response to the publicly circulating information on Latvia’s intention to refuse imports of Russian-origin natural gas into Latvia as of January 1, 2023, the JSC “Latvijas Gāze” would like to highlight the need to observe the regional principle.
The common natural gas market became operational on January 1, 2020 upon agreement among three countries – Estonia, Latvia and Finland. Negotiations on the possible joining of Lithuania are still ongoing.
As a result of the formation of the common market, a closer integration of the market participants’ transmission systems is envisaged. Initially it is a common entry/exit tariff zone with two balancing zones – the Finnish balancing zone and the common Estonian-Latvian balancing zone. When Lithuania joins the common natural gas market, the market coverage will expand accordingly.
Latvia alone cannot prohibit gas imports in the common market area – both Finland and Estonia need to do it as well. It is essentially an intergovernmental matter where a political decision is made upon agreement among all three market participants. Finland and Estonia, too, have taken a wait-and-see stance, waiting for the European Commission’s decision on the future perspective of the gas market. The decision is delayed. Apparently, it needs more time due to the complex nature of the matter.
We do not yet have a concrete plan from the Ministry of Economy, so we cannot comment on how this refusal could take place. There is a winter ahead of us, there are no alternative supply sources in the summer, and we need to take care of a portfolio of more than 350,000 customers, which is why the JSC “Latvijas Gāze” is thinking how to buy gas, including from Russia on condition that this is allowed. We are holding negotiations with our Lithuanian, Estonian and Finnish partners on diversifying natural gas supply options.
With the available reserves, we can keep the market in its current state till July 2022.
On behalf of the JSC “Latvijas Gāze”,
Chairman of the Board
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.
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