Low consumption of natural gas is one of the main challenges for natural gas traders - Kalvitis

RIGA - One of the main challenges for natural gas traders, including joint-stock gas supply company Latvijas Gaze, is the low consumption of natural gas compared to the level before Russia's full-scale invasion of Ukraine, Aigars Kalvitis, Chairman of the Board of Latvijas Gaze, told LETA.

Despite less uncertainty in both natural gas supplies and prices compared to the last two years, 2024 has shown that natural gas markets still have factors that require natural gas traders to be proactive in their activities and constantly adapt their trading strategies to changing market conditions, Kalvitis said.

As an example, he cited the fact that natural gas prices reached their lowest point since June 2021 in March 2024, but have since seen an increase. At the same time, however, price levels are still significantly lower than in 2022 and 2023, creating more favorable conditions for consumers.

Although natural gas consumption in Latvia has increased by 13.6 percent in the first ten months of 2024 compared to the same period in 2023, it has still not returned to pre-war levels, according to data released by the Central Statistical Office. A similar situation has been observed in other parts of Europe.

Kalvitis said that "in such market conditions, the experience and knowledge that Latvijas Gaze has gained over the years about the natural gas market in Latvia and Europe, as well as its ability to be proactive in its operations in changing market conditions, play a key role".

At the same time, it is important for the company to ensure a high quality of service. Despite competition from other natural gas traders, Latvijas Gaze has managed to retain the majority of its household customer portfolio since the household market was fully opened on May 1, 2023.

Speaking about the year ahead, Kalvitis said that 2025 will be full of challenges.

Latvijas Gaze plans to work actively on innovation and digitalization next year to improve access to services and offer more flexible and sustainable solutions to its customers.

As reported, Latvijas Gaze Group's turnover was EUR 159.819 million last year, 4.4 times less than in 2022, when natural gas prices experienced a huge increase and the company made a loss of EUR 56.911 million, compared to a profit of EUR 56.911 million the year before.

As of November 8, 2024, the largest shareholder of Latvijas Gaze is Energy Investment (27.85 percent). Rietumu Banka (28.97 percent), Uniper Ruhrgas International (18.26 percent), Itera Latvia (16 percent), Haupas (6.15 percent).

Latvijas Gaze has a share capital of EUR 55.86 million. According to information on the company's website, Latvijas Gaze is a wholesaler and retailer of natural gas to business customers in Latvia, Estonia, Lithuania and Finland. The company also sells natural gas to households in Latvia.