Since January 1, 2020, the common gas market of Finland, Estonia and Latvia has been launched, which is connected be the Balticconnector gas pipeline, Interfax-Ukraine reports.
“The opening of a common market zone has already significantly increased cross-border gas trade between countries. Consumers and the regional economy benefit from increased competition. The result of the first trading day of the common market clearly confirms that the creation of Balticconnector was the right decision...”, said Taavi Veskimägi, Chairman of the Board of the Estonian energy system operator Elering.
The Lithuanian state energy holding Ignitis grupe (formerly Lietuvos energija) was one of the first participants in the new market. The first gas supplies to Finnish consumers were shipped. Ignitis board member Haroldas Nauseda claims that gas in Finland can now cost 20% less than before.
Balticconnector will ensure gas imports to these countries at a single gas tariff and abolish border charges between them. The Balticconnector pipeline is laid between the countries across the Baltic Sea. Its throughput will be 7.2 million cubic meters of gas per day.
The underwater part of the pipeline runs along the bottom of the Gulf of Finland from the Estonian city of Paldiski to Finnish Inkoo and is 77 kilometers long. By land 55 km passes through Estonia and 21 km through Finland.
The cost of the Estonia-Finland gas pipeline, together with the reconstruction of the gas pipeline in Latvia, amounted to about €300 million, the European Union allocated funding for this purpose in the amount of more than €200 million.
Recall that on December 11 Balticconnector was officially commissioned.
Tags: gas, contracts, tariffs, legislation, EU, gas production, gas transit, Gas processing plant, foreign affairs, Baltic Pipe, Gas market, investments, stocks, pipeline, income, route, gas supplies, volumes