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Thus, Conexus Baltic Grid in the future will provide natural gas transmission and storage services that so far were provided by Latvijas Gaze natural gas utility. The license has been issued for a period of 20 years – until January 4, 2037.

The regulator also decided to annul natural gas transmission and storage license for Latvijas Gaze.

The regulator concluded that Conexus Baltic Grid has all the necessary assets to ensure natural gas transmission and storage services. Under the legislation, before the regulator has decided on new tariffs for transmission and storage of natural gas, the existing tariffs set for Latvijas Gaze are in force.

As reported, natural gas transmission and storage operator Conexus Baltic Grid was established in December 2016 to take over gas storage and transmission from Latvijas Gaze natural gas utility.

Conexus Baltic Grid’s largest shareholders are Russian Gazprom (34.1%), Marguerite Fund (29.1%), German Uniper Ruhrgas International GmbH (18.3%) and Itera Latvija (16%). The new company has 4,830 shareholders. Other shareholders hold 2.5% in Conexus Baltic Grid. The share capital of the new company is EUR 39,786,089.

LETA also reported that the Latvian parliament in February 2016 passed amendments to the Energy Law in the final reading to support liberalization of the gas market and rules on breaking up Latvijas Gaze. Under the legislative amendments, Latvijas Gaze has to be split up in two companies - one for operating the gas transmission and storage system and the other for dealing with natural gas distribution and sale - by April 3, 2017. The process of separating the natural gas transmission and storage operator from Latvijas Gaze should be completed by December 31, 2017. That means that the operator will be a company whose owners will not be affiliated with Latvijas Gaze or its shareholders in any way.