TALLINN - Due to natural gas prices decreasing in the global market, privately owned Estonian gas selling company Eesti Gaas is to lower the price of its flexible package for household customers 35 percent to 1.85 euros per cubic meter with VAT starting from Dec. 1.
"Warm weathers, full tanks and a drop in gas consumption have brought down global prices, which is why we're pleased to inform our customers that instead of a price increased feared for this coming winter, the price will decline instead," chairman of the management board of Eesti Gaas Margus Kaasik said in a press release.
It is difficult to say how long the oversupply of natural gas will last in Europe, according to Kaasik.
"It is likely to continue in the near future but the moment of truth will arrive with cold weather and a spike in demand. In any case, a high price for gas will be reduced and kept in check by LNG infrastructure and ports being established in Europe at an expedited pace," he noted.
Kaasik said that there is enough natural gas available in the world at a reasonable price, however, the crux of the matter is the reception capacity of Europe and the local region as well as long-term agreements with suppliers.
"I very much hope that the peak has passed and that we'll mainly only have good news to share about the price going forward," he went on.
The first shipment of natural gas from the United States, commissioned by Eesti Gaas, arrived at the LNG terminal in Klaipeda, Lithuania, by ship last week. It was the fourth major gas delivery to Eesti Gaas with which the company will ensure supply for its customers this fall. The next vessels transporting gas shipments for Eesti Gaas will arrive in November and January.