Latvia Eyes Lithuanian Imports

Latvian district heating company Rigas Siltums said that it, and electricity supplier Latvenergo, were interested in buying gas from Lithuania's LNG terminal. But bringing the gas into the country's grid will prove difficult.

“We have asked Lithuanians what price they could offer. Rigas Siltums needs around 80mn m³/year; therefore perhaps it makes sense to look for different suppliers. I do not think, however, that we can get something done in the aim until the gas market is unbundled,” said the company boss Normund Talcis.

Latvenergo has said that it expects first LNG deliveries from Lithuania’s Klaipeda LNG terminal in the first half of this year.

Latvia’s energy regulator, the Public Utilities Commission, approved rules for third-party access to the country’s gas infrastructure, including underground gas storage, last September. But Latvijas Gaze, the Baltic country’s gas sales, transportation and storage company co-owned by Gazprom, managed to get a Latvian court ruling that LNG purchases from third-parties could only start after the country’s gas market has been unbundled. Latvia’s government says that will be in 2017.

That is round one to Gazprom – Latvia's sole supplier and owner of 34% of Latvijas Gaze.