Estonia’s Home Consumer Gas Supply Ensured For New Year

Through public tender, Elering has signed a contract with AS Eesti Gaas to ensure security of gas supply for home consumers in the event that regular gas supply is disrupted.

The tender to create a gas reserve for home consumers and entrepreneurs producing heat for living spaces is an important step from Elering’s side in implementing Estonia’s gas market development action plan, which was put together after the acquisition of the gas system operator.

According to Chairman of the Elering Board, Taavi Veskimägi, gas supply has been ensured for the consumer in the most favourable way – based on an option contract signed with the gas seller. “The secured supply for the consumer ensures that the gas consumer has a heated room and food on the table even in the event that normal gas supply is disrupted. We are glad that we did not have to buy the necessary reserve ourselves, but there are market participants on the Baltic gas market who can offer that service, which is much more favourable for the consumer,” said Veskimägi.

The contract signed with Eesti Gaas is valid from 1 January 2016 until the end of March in 2017. Ensuring the gas reserve or being ready to supply gas will cost 221,000 euros during that period of time.

Eesti Gaas is obliged to own, supply and sell natural gas to the system operator as needed within the amount agreed previously. The amount of the reserve ranges from approximately two million cubic metres during the summer period to ten million cubic metres in the winter months. During the contract term, the natural gas reserve will be stored in the Inčukalns underground gas storage facility in Latvia.

According to the signed contract, secured consumers have the possibility to consume natural gas even in extreme situations, such as days with very low outside air temperatures and high gas demand, or in the event of disruptions in the gas infrastructure. The option will be exercised if there is a serious danger of not having enough natural gas for all consumers and secured consumers may suffer on account of this.