Baltic States – CIS, Energy, Gas, Latvia, Legislation

The minister explains that already now Latvia's largest gas consumer, joint-stock power supply company Latvenergo, has been offered to purchase liquefied natural gas from Lithuania for a lower price than what LG is offering, informs LETA.

According to her, having alternative gas suppliers has two advantages – security and price. From a security standpoint, it is important to have alternative suppliers, so that a similar situation like in Ukraine cannot repeat itself when one side decides to switch off the gas flow.

Furthermore, competition is an important aspect in gas prices. The more players in the market, the more competition, leading to lower prices, the economy minister explains.

She believes that the Russian gas company Gazprom is using its monopoly status in Latvia and ''we have been always overpaying for our gas''. As an example she mentioned the Valmiera Fiberglass Company, which pays 28% more for gas than a similar factory in Germany.

As reported, the Saeima's Economic, Agricultural, Environmental and Regional Policy Committee decided earlier this week to submit to parliament the amendments to the Energy Law on the break-up of joint-stock Latvian gas company Latvijas Gaze, which could already be approved in the first reading next week.

Meanwhile, state joint stock power supply company Latvenergo announced in September it intends to purchase its first batch of liquefied natural gas from Lithuania already this year.

LETA also reported, Latvijas Gaze will have to become two legally-independent companies by April 3, 2017, of which one will be in charge of the gas transmission and storage system, and the other will be responsible for natural gas distribution and sale, according to amendments to the Energy Law that the government approved in September.