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

She said that Conexus had filed the lawsuit asking the court to invalidate the regulator’s requirements to the shareholders which Conexus cannot meet without infringing on the shareholder’s legal rights. The administrative regional court has accepted the appeal for hearing.

The company’s representatives said that the regulator’s requirements are actually aimed at the shareholders because Conexus, as a commercial association, cannot legally influence the shareholders’ actions. Interfering with the shareholders’ decisions would be a dangerous signal that might trigger a string of lawsuits and bring financial losses to the company. Conexus saw the lawsuit as the only solution that might help it avoid a fine for not meeting the regulator’s requirements.

Conexus has also asked the court to summon the shareholders as a third party as the court’s ruling will affect their rights and legal interests.

As reported, on September 28, 2018, the Public Utilities Commission certified Conexus Baltic Grid (Conexus) as an independent natural gas transmission and storage system operator. At the same time, the regulator concluded that the company met the certification requirements only partly, therefore the certification came on conditions that should be met by 2020.

By January 1, 2020, Conexus is required to make sure that Gazprom does not have ways to implement direct or indirect control over Conexus. Also, by January 1, 2020, Conexus has to prevent the risks of conflict of interest posed by Marguerite Gas I and Marguerite Gas II participation in both Conexus and Latvijas Gaze. Conexus will have to report every other month to the regulator on progress in these matters and the planned steps.

As reported. Conexus Baltic Grid, which has taken over natural gas storage and transmission functions from Latvijas Gaze, was established on December 22, 2016. Its largest shareholders include Latvia’s Augstsprieguma Tikls (34.36%), Russia’s Gazprom (34.1%) and Marguerite Fund (29.06%).