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Latvijas Gāze will no longer be able to secure the required amount of storage of natural gas reserves – Baltic News Network

According to Nasdaq Riga, as of August 31, 2022, JSC Latvijas Gāze (LG) will hold a public trader’s license to ensure that the Inčukalns underground gas storage has the required amount of natural gas set by the Energy Act. unable to meet its obligations. Notice of Stock Exchange.

According to the Energy Law, in situations where an existing public operator (LG) fails to perform its legally mandated duties, the functions of the public operator will be taken over and performed by JSC Latvenergo.

LG has repeatedly informed the Latvian government and the Ministry responsible for the development of the energy sector about this situation and requested the Ministry of Economy to convene a meeting with the relevant parties with the aim of finding a constructive and joint action plan. did. According to a Latvijas Gāze statement, this has not happened yet.

Amendments to the Energy Law will enter into force on 11 August and a ban on natural gas supplies from Russia will come into force on 1 January 2023.

LG is therefore prohibited by law from receiving natural gas from Russia, LAtvijas gāze explained in a statement to the stock exchange.

In a statement to the stock exchange SIT, LG said it is taking the necessary steps to continue providing natural gas services by purchasing from other alternative suppliers as part of its business operations.

The Amendment to the Energy Law mandates that by August 31st of each year, natural gas utilities must store in Inchukarn the amount of natural gas required for household consumption from October 1st to April 30th of the following year. is directed to. Underground gas storage.

The amount of natural gas owned by LG and stored in Inčukalns’ underground gas storage facility is currently 0.75 terawatt hours (TWh). As of August 31, LG’s natural gas holdings amounted to 0.69 TWh, taking into account contractual obligations already in effect.

From August 10, 2022 to September 30, 2022, LG will be required to maintain a natural gas inventory of 1,150 gigawatt hours (GWh) or 1.15 TWh at the Inčukalns storage facility. From 1 October 2022 to 30 April 2023, a balance of 1.15 TWh and the amount actually supplied to connected users or households must be available in the storage facility on the 1st of each month. Hmm.

The Chancellor explained that the gas currently available at Inčukalns perfectly covers Latvia’s needs for the upcoming heating season.

For added security, the government has decided to keep the gas in storage belonging to LG. This ensures that in conditions of high market demand, this gas will not be resold and will be at the disposal of Latvian households.

The economy minister explained that the government did not buy this gas, but reserved it to guarantee the relevant users or households the necessary amount of natural gas for the next heating season.

Kariņš also reiterated that Latvia will have enough natural gas for the entire upcoming heating season. He cited information provided by the Ministry of Economy and his Conexus Baltic Grid, the operator of the Inčukalns underground gas storage facility.

https://bnn-news.com/latvijas-gaze-will-not-be-able-to-ensure-the-storage-of-the-required-amount-of-natural-gas-reserves-236956 Latvijas Gāze will no longer be able to secure the required amount of storage of natural gas reserves – Baltic News Network

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