Latvia to Discuss Gas Market Liberalisation with Latvijas Gaze Shareholders

Latvia is to begin the liberalisation of its gas market, in compliance with EU regulations, with discussions to begin between the government and the stakeholders in Latvijas Gaze.

Latvijas Gaze, which currently has a monopoly on the Latvian gas market with control of sales, imports, transmission and storage in the country, will need to be unbundled to comply with EU competition law. 

Because of this, the Latvian government said yesterday, it will meet with the shareholders in Latvijas Gaze to discuss the implementation of a liberalisation plan. These shareholders are E.ON Ruhrgas (47 per cent), Gazprom (34 per cent) and Itera (16 per cent).

"The cabinet of ministers will also decide on a proposed mandate to negotiate with JSC Latvijas Gaze and its shareholders constructively to resolve issues on the liberalisation of the Latvian natural gas market in accordance with the interests of natural gas users and energy suppliers," a statement from the Latvian Ministry of the Economy said yesterday.

Reuters news agency (quoting the Baltic News Agency) also reports that plans to diversify the gas market of Lithuania may include an LNG terminal project.

"A significant argument that could be part of these negotiations is what will be an alternative source of gas supply?" the news agency reports Minister for Economy Daniels Pavluts as saying. "The answer to this question could significantly change the playing field."