Baltic States plan to agree on unified mechanism to secure stable gas supplies

Latvia, Lithuania and Estonia plan to reach an agreement on a single mechanism to secure gas supplies, according to legislative acts passed by the Latvian government on Tuesday, 5 October.
The government passed amendments to the agreement between the government of the Republic of Latvia and the government of the Republic of Lithuania on activities to ensure safety of gas supplies and the agreement between the government of the Republic of Latvia and the government of the Republic of Estonia on activities to ensure safety of gas supplies.
Agreements on solidarity for safety of gas supplies consist of multiple articles that detail conditions for provision and reception of requests for solidarity, as well as three principles of solidarity – market activities, auction mechanism activities and non-market activities.
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«If it is not possible to procure the necessary amount of natural gas to supply users protected under the solidarity agreement, an auction mechanism may be used. Then the supplier’s side announces an auction during which natural gas supply companies will be able to submit offers – how much gas and how much they are prepared to pay for it,» the ministry reports.
Finally, if market activities or auction does not help acquire the necessary volume of natural gas or the client’s side does not accept any of the supplier’s offers, the client will be able to announce the next solidarity request with added out-of-market measures applied to the supplier.
«This way will allow us to enhance regional cooperation among Baltic States in the energy field. In the event of a possible energy crisis we are prepared to provide each other with support,» stresses Latvian Minister of Economy Jānis Vitenbergs.
Agreements are needed to adopt EU regulation regarding the duty of EU member states to provide assistance to countries with which they share natural gas pipeline connection in the event of an emergency.
It is planned for the agreements to come into force the day the last written report on completion of internal procedures by participating sides.