• Natural Gas News

    Estonia nearly halfway to gas storage target

Summary

But cost of buying up tendered gas is increasing.

by: Callum Cyrus

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Complimentary, NGW News Alert, Natural Gas & LNG News, Europe, Security of Supply, Political, News By Country, Estonia

Estonia nearly halfway to gas storage target

The government of Estonia has paid €63mn ($63.8mn) in a national gas storage tender to purchase 250GWh for the strategic reserve, ERR News reported August 18.

This is the third such tender for gas storage this year, with the government dispersing state funds through national agency Estonian Stockpiling Agency.

Estonia has now satisfied almost 50% of its 1 TWh gas procurement target, having bought 200 GWh across two earlier tender rounds.

It has allocated €170mn of supplementary budget funds for the national strategic reserve this year. The reserve provides the government with a fall-back position should Gazprom cause further disruption to European gas markets this winter. Estonia aims to phase out Russian gas imports by year-end.

Amid further wholesale price spikes, Estonian minister of economic affairs Riina Sikkut said the third tender round attracted more bids than predecessors. The government paid €252/MWh in the third tender, compared with €192/MWh in the previous round.