Latvian regulator sues Latvijas Gaze for gas pipeline access

By bne IntelliNews March 17, 2016

Latvia's energy market regulator has launched an administrative case against Latvijas Gaze (LG) over refusal to allow third party access to the country's gas infrastructure, the Latvian Public Utilities Commission (SPKR) announced on March 17.

The case comes Riga pushes to enforce the unbundling of LG, which currently controls the entire Latvian gas market. The company, which is Russian controlled, has been fighting the effort for some years, but Latvia recently pushed through new legislation to force the split up of LG. Freeing Latvia's pipelines is key to creating a unified Baltic gas market.

The probe comes over LG's rejection of a request by energy company Latvenergo to use the grid to buy gas from neighbouring Lithuania, which is looking to find more markets for its LNG terminal launched at the start of the year. The regulator claims LG is breaking the Energy Law by denying access to grid. Predictably, LG rejects such interpretation.

LG insists the access of the infrastructure by third parties is not allowed under its monopoly status, which was granted as it was privatised in 1997. The monopoly is set to expire in April next year, at which point the recent legislation demands it must be unbundled.

LG and the powerful gas lobby in Latvia insist the deadline is too short and should be extended to 2019. It succeeded in blocking an earlier deadline in 2014. The Riga government appears, however, more dogged this time in its drive, and has won several significant court cases demanding LG open the gas pipelines.

LG is controlld by Russia, with gas giant Gazprom holding 34% and Itera Latvija - controlled by Rosneft - owning 16%. EU-backed investment fund Marguerite bought close to 30% earlier this year, while Uniper Ruhrgas (formerly E.ON) holds 18%.

 


 

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Latvijas Gaze agrees to set up spin-off company to operate gas grid and storage

A shareholders' meeting at Latvijas Gaze (LG) decided on December 22 to set up a company that will be used to spin off the country's gas pipelines and storage facilities. The creation of Conexus ... more

Latvia fines Swedbank for failings in anti money laundering measures

The Latvian branch of the Swedish banking group Swedbank said on November 23 it will implement measures to curb money laundering. The pledge follows an audit and a fine of €1.36mn from the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss