In the past Latvijas Gāze JSC (LG) behaved like they are in charge, kicked open doors and dictated rules to the state. But this era is now over, Latvia’s Prime Minister Krišjānis Kariņš proudly announced in his interview to TV3 programme 900 sekundes on 25 August.
The PM reminded that until 2017 Russia basically had a monopoly over Latvia’s natural gas market. On top of that, Russia also owned Inčukalns underground gas storage facility. Latvia later bought back the facility. It is now owned by Conexus Baltic Grid JSC (Conexus).
As of 1 January 2022 it will no longer be allowed to import gas from Russia.
«Now there is only a company with a misleading name – Latvijas Gāze, which should be renamed Russian gas or Gazprom gas,» said Kariņš, stressing that the company can no longer dictate rules to the state.
The volume of natural gas to satisfy the heating needs of households during the heating season is 1.15 TWh. The government has ordered LG to reserve such a volume of gas in Inčukalns facility. The company does not have the right to hand these reserves to other gas users, and Conexus will be monitoring the situation to make sure this does not happen.
Although LG claims the gas volume available in Inčukalns facility is lower than 1.15 TWh, Conexus reports that LG’s current gas stores are higher than what is required by the decision made by the Cabinet of Ministers.
Kariņš stressed that the government has basically arrested or ‘reserved’ the gas owned by LG in Inčukalns facility, dictating that it is intended for Latvian households, and the company will not be able to use this gas for anything else.
The government is not interested in hearing about LG’s internal problems and the company will have to fulfil the government’s decision regardless of what they have to say.
The PM also said this week Latvia’s government decided to purchase 0.9 TWh from Latvenergo it previously procured gas reserves for EUR 193.483 million. Latvenergo was also ordered to use this money to procure more gas for its own needs.
BNN previously reported that from mid-September LG will no longer offer gas users the equalised payment option.
Also read: Latvijas Gāze to discontinue equalised payment option
Latvijas gāze’s biggest shareholders include Russian Gazprom (34%), Marguerite Gas II.S.a.r.l. (28.97%), German Uniper Ruhrgas International GmbH (18.26%), and Itera Latvija LLC (16%).