Estonia, Gas, Gas Market , Good for Business, Latvia
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 14:39
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.
According
to Elering, 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.