Latvia changes gas grid rules in bid to shift supply from Russia

Latvijas Gaze AS

09/02/2016 17:01

By Gederts Gelzis 
    RIGA, Feb 9 (Reuters) - Latvia changed the rules on the use 
of its gas grid on Tuesday in an effort to get major consumers 
to import more gas from neighbouring Lithuania and reduce its 
dependence on Russia. 
    However, Latvijas Gaze  GZE1R.RI  which is 34 percent owned 
by Russian gas supplier Gazprom  GAZP.MM , said it would refuse 
to use imports from Lithuania for domestic Latvian supply until 
its sales monopoly expires in April 2017.  
    Latvijas Gaze transports gas from Lithuania for sales in 
Estonia, but Russia remains the sole gas supplier to Latvia. 
    Latvia's Minister of Economics Dana Reizniece-Ozola told 
Reuters that Riga's decision should allow state-owned power 
producer Latvenergo to demand Latvijas Gaze ships gas from 
Lithuania to its gas-fired power plants. 
    "There is currently an offer from Lithuania (to sell gas) 
and Latvenergo is willing to take it," she said. 
    Lithuania has led efforts in the Baltic region to reduce 
dependence on Russian gas imports by opening a liquefied natural 
gas (LNG) import terminal in late 2014, in line with the 
European Union's policy to diversify gas supplies to Europe. 
    Lithuania expects supplies from Norway to surpass those from 
Russia this year. urn:newsml:reuters.com:*:nL8N15N1UF 
    Latvijas Gaze, which the Latvian government wants to split 
after April 2017 into a gas sales business and a grid and 
storage operation, said it would keep fighting any move to make 
it use alternative supplies. 
    "Any attempts to open the market before April 3, 2017 
contradict privatisation agreements and promises, which were 
made in 1997," Vinsents Makaris, a spokesman for Latvijas Gaze, 
said. 
    Latvijas Gaze has previously asked a Latvian court to 
suspend rules imposed by Latvia's national energy regulator that 
were also aimed at allowing imports from the third-countries. 
    The parliament is scheduled to have a final vote on the 
restructuring plan on Thursday. 
    European Union's infrastructure investment fund Marguerite 
bought 28.97 percent stake in Latvijas Gaze from Uniper, a 
subsidiary of Germany's E.ON, in January. urn:newsml:reuters.com:*:nL8N15C3D3 
    Uniper remains a shareholder with 18.26 percent, while 
Latvian gas trader Itera Latvija holds 16 percent. 
 
 (Writing by Nerijus Adomaitis; Editing by Alexander Smith) 
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters 
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net)) 
 
Keywords: LATVIA GAS/