Natural Gas Imports from Lithuania by New Market Participants Represents 8.6 Per Cent of Total Gas Imports in January

In January, 71.7 million cubic metres of natural gas was imported to Estonia, of which almost 6.2 million cubic metres, or 8.6 per cent of total imports, constituted gas bought from Lithuania by new gas market participants. The remaining 91.4 per cent of the natural gas was imported by Eesti Gaas.

Natural gas imports from Lithuania started in December, totalling 0.6 per cent of Estonia’s total imports.

In January, only one balance provider, Baltic Energy Partners, imported Lithuanian gas to Estonia. However, since the beginning of February, Reola Gaas has also begun buying gas from Lithuania after signing a balance agreement with EG Võrguteenus at the end of January. According to the balance plan, the two balance providers will import around 10 million cubic metres of gas from Lithuania in February. Eesti Energia also intends to start gas imports.

“The entry of new gas trading companies is a significant step towards having an open natural gas market that offers actual competition in Estonia. The Lithuanian LNG terminal which started operations last year, and the gas exchange in Lithuania offer opportunities for alternative shipping. The capacity of new gas shipping is growing quickly and, by replacing gas that until now has been shipped from Gazprom, a more balanced gas supply is assured. In the current geopolitical situation, this is very important from the gas consumer’s perspective, and it enables consumers to use gas in domestic households as well as in industry without security of supply risks,” said Elering’s Chairman of the Board, Taavi Veskimägi.

In January, the total amount of natural gas imported to Estonia decreased by 22 per cent year-on-year. One of the reasons for the slump were the warmer temperatures. In January, the average temperature was minus 0.9 degrees Celsius in comparison to minus 6.5 degrees Celsius in January last year.

Gas transmission network operator EG Võrguteenus rendered natural gas transmission service for up to 70.9 million cubic metres in January. The gas transmission network service rendered to the largest distribution network provider, AS Gaasivõrgud, totalled 59.7 million cubic metres.

In January, 111.3 million cubic metres of gas moved between Latvia and Russia through the gas transit pipeline that passes through South East Estonia, a 12 per cent drop on last year’s totals.

Based on the price formula provided by Eesti Gaas, Elering estimates that the average price of gas shipped to Estonia was 32.07 euros per megawatt-hour in January.