Energy, EU – Baltic States, Gas, Gas Market , Good for Business, Lithuania
International Internet Magazine. Baltic States news & analytics
Wednesday, 24.04.2024, 04:45
Lithuania's Ignitis starts supplying gas to Finland
Ignitis has, for the first time, delivered
natural gas to Finnish consumers through the new Balticconnector gas connection
which was opened on the same day. The company has already entered into gas
supply contracts with numerous major Finnish business customers.
The 150km
long Balticconnector gas pipeline, which was actually opened for operation on
the first day of the New Year, has connected the Finnish and Baltic States’ gas
transmission systems, providing conditions for the gas market liberalisation in
the said Northern country. Previously, all the necessary gas was supplied
to Finland solely through gas pipelines from Russia.
‘The gas
market being opened up for competition symbolises a new era of more favourable
conditions for Finnish consumers. For instance, prices of gas supplied by
Ignitis are linked to the price indexes of European gas markets, therefore the
pricing is dependent on the market conditions. Ignitis also offers non-standard
customised gas supply solutions to major Finnish gas consumers. It is estimated
that, because of these arrangements, gas supplied to Finnish consumers may be
up to one fifth cheaper when compared to the prices prior to the abolition of
the market monopoly in the country.
Furthermore,
the new connection will increase the security of gas supply, as the country
will not be dependent on only one supplier and will have alternative choices.
We are glad to be a part of this transformation and that we will begin the
supply of significant amounts of gas to the Finnish industry from the first day
of market liberalisation’ – says Haroldas Nausėda, a board member of
Ignitis, who is responsible for business customers and international
development.
Specialists
of the company Ignitis have actively participated in discussions in Finland and
consultations on the preparation for gas market liberalisation and the creation
of the regulatory legal framework thereof. The company has by far the widest experience
in the region due to having participated in the gas market liberalisation
processes in Lithuania, Latvia and Estonia.
Finland had
to liberalise its gas market in 2020 due to the ending of the transitional
period for implementation of requirements of the third EU energy package in the
gas supply sector. The said legal act requires separating gas and electricity
transmission network activities from energy production and supply activities.
Ignitis is
unique company in the region because it has ensured its gas supply from three
different sources. The company has long-term LNG supply contracts and
purchases gas at the market for short-term LNG contracts. Furthermore, the
company purchases gas delivered through pipelines and actively uses the Inčukalns
underground gas storage facility in Latvia.
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