On Wednesday, 5 October, Saeima’s Budget and Tax Committee approved the idea to increase funding for the state budget for emergencies by EUR 236.9 million for the procurement of liquefied natural gas.
EUR 246 922 840 is intended to procure 0.9 TWh of liquefied natural gas to secure state energy reserves.
Ministry of Economics deputy state secretary for energy affairs Edijs Šaicāns explained that the contract for the procurement of gas is already signed. Gas was procured from the U.S. and will be delivered using Klaipeda terminal. In November this gas is planned to be pumped into Inčukalns underground gas storage facility.
Gas was purchased for the exchange price of 217.56 EUR/MWh.
Šaicāns stressed this gas is officially the country’s strategic reserve that will be stored in Inčukalns under state ownership. If need be, the state will decide how this gas will be used.
He also told Saeima deputies that there is currently 12.6 TWh of gas stored at Inčukalns facility. At the same time, Šaicāns reminded that the facility stores not only Latvia’s but also Estonia’s, Lithuania’s and other gas traders’ gas volumes.
EUR 236.9 million will be allocated from the state budget from emergencies and added to the budget of the Ministry of Economics.
On 27 September the government decided to increase the state budget for emergencies by EUR 236 922 840.
Funding is necessary in order to procure gas reserves by 31 December 2022 in accordance with the Energy Law.
The Ministry of Finance continues receiving requests to cover expenses and forecasts for the previous period and funding requests from ministries to cover different conceptual decisions.
Initially it was decided to increase the state budget programme for emergencies by EUR 82 570 325.
To secure funding for Covid-19 consequences and preventive measures, as well as single-time state budget investments, on 6 January 2022 the government in Latvia decided to increase the state budget programme for emergencies by EUR 300 million.
To ensure implementation of measures to reduce the emergency energy price rise
the government increased the state budget programme for emergencies by another EUR 250 million on 1 February.
Following the start of the Russian-Ukrainian war and growing geopolitical risks, the government decided to increase the state budget programme for emergencies by another EUR 62 511 546.
To provide aid to Ukrainian citizens seeking asylum in the country, on 5 May the government allocated another EUR 50 million for the state budget’s programme.
On 8 June the Cabinet of Ministers issued the decree to increase the state budget programme by EUR 7 929 699 to secure single-time investments.
The state budget programme for emergencies was increased multiple times throughout the year to meet certain emergencies and help soften or prevent serious consequences. The total amount of money allocated to this state budget programme this year so far reaches EUR 1 417 494 570.