Latvian TV: Latvijas Gaze attempting to block consumer access to Lithuanian gas

The recent launch of a liquefied natural gas terminal in Klaipeda has made it technically possible for gas from Lithuania to be technically supplied to Latvia; however, the Latvian gas supply Latvijas Gaze has come up with new rules which put a limit on gas supplies to Latvia and at the same time preclude consumers in Latvia from using gas from Lithuania, the Latvian television programme De Facto reported last night.

The limited throughput of the pipeline from Lithuania makes it impossible to ship large amounts of Lithuanian gas to Latvia. Furthermore, the price of gas supplied by these means is not currently very attractive. However, there is an interest on the market. One year ago, the Klaipeda terminal's operator made an agreement with Latvijas Gaze regarding gas storage at the Incukalns underground storage facility. This year, an agreement was signed on gas transit to customers in Estonia.

In order to use Latvian pipelines, an agreement has to be made with Latvijas Gaze. The company had to draw up regulations on the usage of these pipelines, which would be equal and comprehensible for all users. Latvijas Gaze submitted its regulations to the Public Utilities Commission, which is still reviewing them.

"The regulator repeatedly requested that the regulations be altered; however, not all of these recommendations were taken into consideration," Public Utilities Commission board member Rolands Irklis told De Facto.

The regulator has received complaints from all three Baltic States, which claim that Latvijas Gaze intends to organise access to the pipelines and the Incukalns facility so as to give priority to local consumers, or in other words, to the company itself.

The Lithuanian Energy Ministry is concerned that such regulations will be discriminatory against consumers and traders outside Latvia. The Estonian gas network operator believes that all players in the gas market, including Latvijas Gaze, should be treated equally.

Latvenergo, which is considering buying gas from Klaipeda, says that Latvijas Gaze's regulations will make supplying gas from the Klaipeda terminal to power facilities in Riga impossible, and warns that the European Commission may open an infringement procedure against Latvia as a result.