RIGA - The gas transmission system operators (TSO) of Finland, Latvia and Estonia on Thursday signed an agreement on a compensation mechanism enabling the functioning of a single gas transmission tariff zone in these countries starting in 2020.
The agreement has been signed by representatives of Finland’s Gasum, Latvia’s Conexus Baltic Grid and Estonia’s Elering, the Estonian gas transmission system operator’s representatives informed LETA.
The agreement unifies the entry point tariffs on the external borders of the region and removes commercial interconnection points between countries. It will be used for transportation of the gas across Finland, Estonia and Latvia without additional charges.
The agreement is expected to lead to higher market liquidity by making it easier for shippers and traders to sell gas on the whole market area.
The agreement became effective on the date of signing for Elering and Conexus and it will become effective for Gasum once the changes required in national legislation enabling the Finnish transmission system operator to enter into such agreement become into force.