Price of Natural Gas Imported From Russia Falls By More Than a Third since Beginning of Year

In comparison with the beginning of the year, the average price of Gazprom’s natural gas imported to Estonia has fallen by 35 per cent according to Elering’s calculations, remaining around 20.95 euros per megawatt-hour in August.

The reason for the sizeable fall in the price is primarily the fall in prices for light and heavy fuel oil on the world market, according to which a continuous fall in the gas prize can be expected.

On the Get Baltic Lithuanian gas market, the average price of natural gas was 18.35 euros per megawatt-hour in August, and on the Kaasupörssi Finnish gas market gas prices remained in the range of between 17.01 and 20.61 euros per megawatt-hour last month.

In August this year, gas sellers imported natural gas from Lithuania in the amount of 5.1 million cubic metres, constituting 24.9 per cent of Estonia’s total gas import.

Last month, gas was imported by Baltic Energy Partners, Eesti Energia and Reola Gaas. The balance of the gas was imported by Eesti Gaas from Russia. In total, 20.32 million cubic metres of gas was imported to Estonia last month, four per cent less year-on-year.

In August, 24.9 per cent of natural gas imported to Estonia entered via Karksi, 30.3 percent via Värska and 44.8 per cent via Narva. Gas volumes entering Estonia ranged between 0.2 to 1.1 million cubic metres per twenty-four hours, and there were no disturbances in the cross-border gas supply.

In August, natural gas transmission services rendered by Elering totalled 19.25 million cubic metres. Of that, the volume of services rendered to the biggest natural gas distribution network, AS Gaasivõrgud, was 16.4 million cubic metres, totalling 85 per cent. The gas transmission pipeline’s estimated gas reserve increased by 26.8 per cent to 4.3 million cubic metres in a yearly comparison. In comparison with July, the reserve has decreased by 3.2 per cent.

In August, 528.1 million cubic metres of natural gas moved from Russia to Latvia through the gas transit pipeline that passes through southeast Estonia, as much as last year at the same time.

The Inčukalns underground gas storage facility in Latvia was filled to 75 per cent of its capacity by the end of August, and gas continues to be routed to the facility. 

The full report for the gas market of July is available here.