Gazprom becomes shareholder of 34.1% in new Latvian gas operator

Russian gas giant Gazprom has received 34.1 percent in the capital of Conexus Baltic Grid, new Latvian gas transportation operator.

Russian gas giant Gazprom has received 34.1 percent in the capital of Conexus Baltic Grid, new Latvian gas transportation operator.

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Conexus Baltic Grid is new Latvian gas transportation operator

Russian gas giant Gazprom has received 34.1 percent in the capital of Conexus Baltic Grid, new Latvian gas transportation operator, the Russian company said in a statement.

Gazprom is one of the shareholders of Latvijas Gaze, which is the country’s gas monopolist.

Under the law on liberalization of gas market in Latvia, Latvijas Gaze should be split into two independent companies: gas transportation and storage operator and gas distribution and trade operator before April 2017.

In December 2016, Conexus Baltic Grid was established to take over distribution and storage of gas functions of Latvijas Gaze.

The new operator obtained the license from Latvia’s Public Services Regulatory Commission earlier this year.

Conexus Baltic Grid will provide services under the same tariffs as Latvijas Gaze until Latvia’s Public Services Regulatory Commission sets new tariffs.

It is planned that initially the breakdown of shareholders’ stakes in Conexus Baltic Grid will be similar to the one in Latvijas Gaze.

Latvijas Gaze shareholders are Gazprom (34 percent), Marguerite Fund (28.97 percent), Uniper Ruhrgas International GmbH (18.26 percent) and Itera Latvija (a company controlled by Rosneft, 16 percent).

The new Latvian legislation bans gas producers from holding stakes in gas transportation assets. Considering this, Gazprom, Uniper and Itera Latvija should withdraw from Latvia’s gas transportation business before 2018.

Source: Tass

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