bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 24.03.2017 | Name days: Kazimirs, Izidors
LatviaLatvia

Latvenergo considers entering the gas market

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvijas Gaze continues limiting the interests of other gas traders by not allowing them to access Incukalns gas storage facility. Previously the monopolist denied doing that. The excuse mentioned then was that there was no room in the storage facility. The gas monopolist continued making life harder for others even after major amendments to the law were added. Now Latvenergo considers competing with Latvijas Gāze, as reported by Nekā personīga.

The load on Incukalns gas storage facility has declined by more than half. Nevertheless, LG manages to find new reasons why other gas owners are not allowed to store gas there. Latvian consumers still pay the highest price in Europe for gas. LG says the costs of storing gas in Incukalns are high, but the company allegedly does not wish to make money off it.

Up until now, LG and Russian Gazprom Group companies were the only ones using Incukalns. There were also reserves for Estonia and Lithuania, as well as consumers of Pskov Oblast. Once amendments were approved to permit the liberalization of the gas market, discussions commenced about storing gas of other suppliers in Incukalns. LG responded that it is not possible because there is no room in the storage facility.

Everything is different now. Incukalns gas storage facility is less than half-full. This was mentioned by Itera Latvija manager Juris Savickis at the last shareholders meeting. He frightened consumers by saying that heating may be disrupted in winter because of the low gas volume and low pressure needed to pump gas.

An interesting incident took place last year. Lithuania wished to pump 100 million m3 of gas from Klaipeda terminal to Incukalns. LG said no, that would not be possible. LG explained that by saying it was pump-out season for gas, and that Lithuania would have to wait six months before the matter could be discussed. Then Lithuania lost interest. «Last year, Latvia agreed to store 300 million m3 of gas from Lithuania. We received nothing at the beginning of the season. It seems they had reasons not to deliver,» – said LG Chairman Aigars Kalvitis.

At the beginning of 2016, Latvenergo procured five million m3 of gas from Gazprom without LG’s mediation. It is stored in Incuklans but cannot be used. It is necessary to wait for 2017 first. «We’ve had three opportunities to buy and transport gas from Lithuania, from LitGas. LG declined the request to be provided access to networks twice. The regulator’s decision applied to that. Another opportunity we used was Gazprom’s export auction in March. We had procured five million m3 of gas there. We had requested access to use networks in May and December. LG declined that request,» – says Latvenergo board member Maris Kunickis.

Latvenergo complained to the public utilities regulator and the latter expressed a warning to LG, saying its restrictions are illegal. But it seems Kalvitis is not at all bothered: LG does not intend to provide Latvenergo with access to the company’s transmission networks. Economy Minister Arvils Aseradens believes behaviour of LG contains not so much petty nuisances as it does the inability to work under new economic conditions. «The regulator has warned LG about the illegality of putting obstacles in the way of other businesses like that. Latvenergo considers the possibility of procuring gas if it comes across a good offer. What we hear from our Lithuanian colleagues is that Latvians find it hard to understand different ways of cooperating with other gas storage companies. We see LG’s current behaviour is not very flexible,» – says Economy Minister Arvils Aseradens.

The ministry and public utilities regulator believe that LG’s arguments on seasonal restrictions for intake and pump-out of gas are laughable, because it is possible to make additional transactions online and organize the supply of gas for later date.

LG’s tariffs are also the highest in Europe. Lately the company has been known to move away from tariff-calculation methods. The gas price is closely tied to oil and crude price. It is a formula LG has to use to calculate prices for consumers. Tariffs should change alongside oil and crude prices. Crude price had unexpectedly decline by one quarter in January 2016 in comparison with November 2015. The price dropped from EUR 1.22 to EUR 0.82 per gallon. The gas price, on the other hand, remained unchanged – EUR 206 per 1,000 m3.

«We check the data from LG on the gas procurement price from Gazprom every month. We have noticed that until now LG has not mentioned mark-up higher than the one it would have paid Gazprom. It is a different case of whether or not LG could have performed its procurements in a more optimal way. The most likely answer is yes,» – comments Public Utilities Commission Chairman Rolands Irklis.

Talks about the sale of Incuklans gas storage facility have commenced. According to Nekā personīga, talks are held with two companies. LG co-owner Marguerite Fund, which represents multiple European banks, and Open Grid Europe, one of the largest gas companies in Germany. One conditions that has been put on the table is that Incukalns infrastructure will be bought if the Latvian state participates in the deal. This could happen with Latvenergo’s mediation. Latvenergo plans to become a direct competitor to LG. «Yes, we will not hide our plans to progress in this direction. We are one of the largest consumers in Latvia. We could also become a gas trader,» – said Kunickis.

Ref: 102.109.109.5991


Leave a reply

Proportion of HIV-infected tuberculosis patients in Latvia is 17.4% - the highest in EU

The proportion of HIV-infected tuberculosis patients in Latvia is 17.4%, which is the highest not only among Baltic States, but also Europe, as mentioned by Jurijs Perescikovs, director of Disease Prevention and Control Centre’s Infection Risk Analysis Department in a discussion dedicated to the World Tuberculosis Day.

British police names London terrorist

British police has stated that the March 22 terror attack in London was committed by British-born Khalid Masood. Another of his victims has died.

Air temperature in Latvia to remain largely unchanged in coming days

On Friday, 24 March, high atmospheric pressure will remain in the country. Because of that, some clouds will be seen in the sky, wind speed will stay moderate, and air temperature will rise to +3° C…+8° C, as reported by the State Environmental, Geology and Meteorology Centre.

Kucinskis hopes to find a new director for State Chancellery within two weeks

Latvian Prime Minister Maris Kucinskis hopes to find a new manager for the State Chancellery within the next two weeks.

InnoEnergy business opens an office in Latvia

International business accelerator company InnoEnergy has opened an office in Latvia. This objective of this company is preparing new and innovative technologies developers for attraction of investments as part of InnoEnergy accelerator.

Bank of Latvia increases inflation outlook for 2017 to 2.7%

The Bank of Latvia has increased its inflation outlook for 2017 from 1.6% to 2.7%, as reported by the bank’s press-service.

CC permits Lithuanian company to acquire decisive influence over Latvian businesses

Latvia’s Competition Council has permitted two mutually associated deals to be performed by W.P.Carey and Kesko, allowing the two concerns to acquire decisive influence over Lithuanian Baltic Retail Properties and three companies registered in Latvia – K Prof, Polo LS and Daugavkrasts M.

Estonian military transport firm co-operates with leading Norwegian and British companies

Estonian military transport manufacturer Milrem has made a joint product with Norwegian weapon-maker Kongsberg and British remote system producer Qinetiq North America.

Welfare Ministry opposes diverting part of social budget to healthcare

Experts view Finance Ministry’s proposal to divert certain parts of the social budget to pay for certain healthcare services. Welfare Ministry is especially cautious about this proposal.

Saeima agrees to publish names of disciplinary punished judges

Publication of information about disciplinary penalties applied to judges, their names and surnames will no longer be prohibited, as stated by amendments to the Judicial Disciplinary Liability Law supported by the Saeima in the first reading on Thursday, 23 March.

Experts: internet users open up 30% of fraudulent e-mail letters

Cyber criminals are becoming more and more cunning and their fraudulent e-mails – harder and harder to differentiate from real ones. Internet users open up to 30% of fraudulent e-mail letters, explains eScan antivirus developers.

Minister: Latvia supports International Coalition’s fight against Daesh

«The fight of the International Coalition against Daesh has become a very effective instrument to help reduce Daesh military, financial and recruitment capabilities,» said Latvian Foreign Affairs Minister Edgars Rinkevics.

New pulp factory planned in Estonia

Estonian entrepreneurs have envisaged building a high-tech pulp-making plant near the city of Tartu and have submitted the plan for confirmation from Estonian national special planning authorities.

Ventspils Freeport Authority announces procurement

Procurement has been announced for the construction of an access road in Ventspils, Talsu Street 200 and landscaping of nearby territories so that one of the land tenants can commence construction of their building there, as reported by Ventspils Freeport.

Estonian investors consider construction of pulp factory in Latvia

Investors that consider building a pulp factory worth EUR 1 billion in Estonia’s southern region allow for the possibility of getting permission for the same project in Latvia, because this process can take a long time in Estonia.

Russian singer barred from going to Eurovision in Kyiv

Ukrainian authorities have banned Russian Eurovision representative from entering Ukraine, where the pop song contest Eurovision is to be held in May.

Travel passports planned to be introduced in Latvia

Deputies have submitted amendments to the Personal Identification Documents Law, suggesting the adoption of travel passports to avoid situations when people are denied the right to travel freely or participate in elections.

Tragic attack in London

In a tragic attack on civilians and police in London, five people have been killed and no less than 40 injured.

Farmers urge voting in favour of preserving land in the hands of local residents

A letter with a request to support farmers, countryside residents and amendments to the Law on Land Privatisation in Rural Areas has been sent to members of the Saeima.

Officials support Finance Ministry’s proposals for medium-term tax strategy

At the 22 March meeting of the National Economy Council, members of the parliament decided to conceptually support Finance Ministry’s proposals for medium-term tax strategy.

Ameriks received nearly 200,000 euros from fast loan companies in interest pay

Vice-Mayor of Riga Andris Ameriks received income of nearly 200,000 euros in interest pay from fast loan companies 4finance and Mogo last year, according to the declaration for 2016 submitted to the State Revenue Service.

Estonia to reduce availability of plastic bags in shops

Having passed amendments to the Estonian «Packaging Law», the Riigikogu has adopted a plan to reduce the use of plastic bags in the Baltic country over the coming years.

Latvian businesses in Japan to be provided with stable tax payment regime

Latvia businesses working in Japan will be provided with a stable tax payment regime that will not be influenced by amendments to Japan’s tax regulations, as stated in Saeima’s report.

Multiple parties to gather in a single candidate list to compete with Lembergs

Latvian Association of Regions, National Alliance, For Latvia’s Development and Unity will start at municipal elections in Ventspils under a single candidate list, said the leader of this unified list Girts Valdis Kristovskis in an interview to Latvijas Avīze.

Reirs: ministry’s offered tax reform will change nothing for most pensioners

Finance Ministry’s offered tax reform will add only slight changes. Most pensioners will not feel any changes from this reform – neither good, nor bad, said Welfare Minister Janis Reirs in an interview to Rīta panorama.