JSC “Augstsprieguma tīkls” has purchased shares in JSC “Conexus Baltic Grid”

The Government has decided to purchase part of shares in Inčukalns Underground storage and transmission system operator JSC "Conexus Baltic Grid". According to this decision, Latvian Electricity Transmission System Operator JSC “Augstsprieguma tīkls”* (AST) has concluded a transaction on 15 December 2017 with the German Energy Company “Uniper Ruhrgas International GmbH” (Uniper) about the purchase of 18,31% it owns in the natural gas transmission and storage system operator. The price of the transaction between AST and Uniper and other conditions thereof are confidential.

On the grounds of the assessment and opinions of the responsible institutions and the involved independent consultants, the Government has concluded that the purchase of shares in "Conexus Baltic Grid" is an important state energy independence and safety issue. At the same time, by purchasing the shares of Inčukalns Underground storage and transmission system operator the aim of the country is to continue the way towards the formation of regional gas market of the Baltic States and Finland to 2020. It will be possible to reach completely the aim defined by the Government by ensuring also the development of the relevant infrastructure (Estonia-Finland interconnection – Balticconnector and Lithuania-Poland interconnection - GIPL), by reaching high market efficiency and equal competitiveness and by ensuring the equalisation of natural gas price with the Central Europe. Concurrently, the purchase of shares of JSC "Conexus Baltic Grid" is an economically beneficial transaction for Latvia on the grounds of the assessment that is made in accordance with the internationally recognized assessment methods.

The decision about the purchase of 18,31% of shares in JSC "Conexus Baltic Grid" in the possession of AST was made taking into account the special experience of AST in the management and infrastructure exploitation of energy transmission assets. The purchase of shares gives also additional possibilities to AST in provision of power supply security because natural gas is a fuel for Riga thermal power plants that is an important electricity production source for the supply safety of the whole region in period when the is a high demand for the heat and electricity and water inflow in River Daugava is not sufficient to cover the demand for electricity with the hydroelectric power plants.