Baltic, Energy, Gas, Latvia, Legislation

BC's photo.

The limited throughput of the pipeline from Lithuania makes it impossible to ship large amounts of Lithuanian gas to Latvia. Furthermore, the price of gas thus supplied is not very attractive. However, there is an interest on the market. One year ago, the Klaipeda terminal's operator made an agreement with Latvijas Gaze on gas storage at the Incukalns underground storage facility. This year, an agreement was signed on gas transit to customers in Estonia.

In order to use Latvian pipelines, an agreement has to be made with Latvijas Gaze. The company had to draw up regulations on usage of these pipelines, which would be equal and comprehensible for all users. Latvijas Gaze submitted its regulations to the Public Utilities Commission, which is still reviewing them.

"The regulator repeatedly requested that the regulations be altered, however, not all of these recommendations were taken into consideration," the Public Utilities Commission's board member Rolands Irklis told "De facto".

The regulator has received complaints from all three Baltic States, which claim that Latvijas Gaze will organize access to the pipelines and the Incukalns facility so as to give priority to local consumers, or in other words – to the company itself.

The Lithuanian Energy Ministry is concerned that such regulations will be discriminatory against consumers and traders outside Latvia. Meanwhile, the Estonian gas network operator believes that all gas market players, including Latvijas Gaze, should be treated equally.

Latvenergo, which is considering buying gas from Klaipeda, says that Latvijas Gaze regulations will make supplying gas from the Klaipeda terminal to power facilities in Riga impossible, and warns that the European Commission may open an infringement procedure against Latvia as a result.