Baltic, Construction, EU Regional Policy, Gas, Gas Market , Good for Business
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Wednesday, 24.04.2024, 22:46
Estonian, Latvian and Finnish TSOs continue discussions about harmonizing the regional gas markets
The first steps for harmonization between Baltic and Finnish
gas markets become possible in 2020 when the Balticconnector pipeline connects
the Estonian and Finnish gas markets. Even before the possible harmonization
takes place, the regular discussions between the TSOs bring new possibilities
for co-operation in developing cleaner, effective gas markets in the region.
The TSOs have signed a joint Memorandum of Understanding to
illustrate their willingness to continue co-operation in the future to improve the
functioning of their respective national gas markets, and to ensure gas is a
competitive alternative for users in industry and transport. The memorandum is
open and foresees the option for other TSOs to join the discussions at a later
stage.
The memorandum of understanding discusses the matters, terms
and definitions which need to be solved if the Baltic countries and Finland
decide to proceed with market integration in the future. This integration
requires a separate political decision from the countries involved. Estonia and
Latvia have already set a goal to fully integrate their gas markets from the
beginning of 2020.
Gas increases its importance as a cleaner alternative for
industry and transport, as the need for climate change mitigation becomes more
urgent. Co-operation between regional TSOs is an important channel for
exchanging ideas, thoughts and concepts to improve the effectiveness of the gas
markets, and to find shared opportunities for providing cleaner,
cost-competitive alternatives for energy users in the Baltic countries and
Finland.
Based on the memorandum, the TSOs will now continue dialogue
on pre-conditions for increased co-operation between the operators, to improve
the functioning of the existing national markets and to create a basis for
discussing possible further market integration in the future.