Latvian Trader Joins Baltic Exchange
Latvian natural gas trader AJ Power registered with the GET Baltic gas exchange this week, bringing the number of traders to 55, the exchange operator said. It is the first Latvian trader to join.
“We are going to continue to pursue the long-term goal of GET Baltic becoming an operating natural gas exchange of the Baltic countries…We are also going to facilitate and develop trading procedures on the gas exchange and the products offered so that the changing needs of the gas market players are satisfied as much as possible,” said GET Baltic CEO Giedre Kurme.
GET Baltic follows the model of the Finnish Natural Gas Exchange, which was developed with the advice of the market. Trading is done via the internet.
According to the reinforced Baltic Energy Market Interconnection Plan, a unified gas trading platform for the regional gas market is to be implemented by the 2020.
The head of AJ Power’s Wholesale Sales Department Gundega Namniece says that, by signing up with the Exchange, the company is looking forward to “finally” starting gas trading on the gas exchange. The company is in electricity and gas wholesale businesses in Latvia.
“At the moment the future of gas trade in Latvia is unclear, however we are optimistic and hope to start gas supply to consumers as soon as possible,” she said. The market has not been unbundled yet along European Union lines.
Regarding a single gas exchange for the entire Baltic gas market region, Namniece told the company was “positive” for several reasons.
“First, a more liquid gas market means more realistic gas prices representing both supply and demand side. This factor will bring different market participants together effectively. In addition, a larger common market might also result in cheaper balancing costs. Second, uniform and homogeneous exchange regulations for the entire region will minimize the administrative burden and the associated costs and hopefully will result in minimized trading fees. But more importantly, it will facilitate suppliers’ operations in foreign markets and will hopefully result in higher competition,” the AJ Power senior official said.
Namniece expects a pan-Baltic gas exchange to facilitate a faster real market liberalization process and create more choice for consumers.
Linas Jegelevicius