Latvian energy company Latvenergo JSC has acquired rights to use annual power output of 6 TWh from Klaipeda liquefied natural gas (LNG) terminal in the form of regular supplies to Latvenergo thermal power plant (TEC) for the next ten years, as confirmed by the company’s representatives.
The company, participating in Klaipeda Oil’s organised liquefied natural gas terminal’s long-term power allocation procedure, acquired the rights to use 6 TWh of energy annually in the form of regular natural gas supplies for Latvenergo TEC for the next ten years.
According to Latvenergo representatives, the auction held by Klaipeda terminal in Q4 2022 shows that demand currently exceeds supply four times.
Klaipeda will dictate conditions for provision of power.
Businesses that will offer long-term (up to 10 years) contracts will have an advantage in provision of power. It is expected that two-thirds of Klaipeda terminal’s annual volume will be auctioned off. Major clients will have the right to choose gas pumping dates, which is critically important for first quarter supply.
Additionally, thanks to such a contract Latvenergo will be able to start procuring gas without intermediaries starting with 2023.
This is expected to provide better prices for Latvian clients.
Latvenergo is a Latvian energy company that is engaged in production and sale of electricity and heating energy, as well as energy distribution services.