Finland, Estonia and Latvia signed an agreement to create a Common Gas Market

Estonian state-owned company “Elering AS”, aт electrical and gas networks system administrator has signed an agreement with transmission system operator companies in Finland and Latvia to create a Finnish-Estonian-Latvian Gas Market by the beginning of 2020.

The concluded contract will ensure gas imports to these countries at a single gas tariff and cancel the border charges between them. It means that next year the gas will flow between Finland, Estonia and Latvia with no additional cost, the company said. The “Baltic connector” pipeline will be laid between the countries across the Baltic Sea. Its capacity will be 7.2 cubic meters of gas per day.

“The contract is used to transport gas through Finland, Estonia and Latvia without additional costs”, said three operators Gasum (Finland), Elering (Estonia) and AS Conexus Baltic Grid (Latvia).

The pipeline is being constructed to connect countries and help divide gas supplies to regions that receive gas supplies from Russia, strengthening ties with other gas projects in Europe.

The energy company “Elering AS” is 100% owned by the state, it manages about 5.5 thousand km of electricity transmission networks and 150 substations, as well as 900 km of gas pipelines, 3 gas metering stations and almost 40 gas distribution stations.

It was reported earlier that the EU agreed on amendments to the Gas Directive on the “Nord Stream 2”. The amendments should improve the existing Gas Directive and ensure the application of the principles of EU energy legislation (third party access, tariff regulation, division of ownership and transparency) to all gas pipelines to and from third countries.

Source: interfax

 

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Tags: gas, contracts, Nord Stream 2

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