The unified natural gas market starts its operation on 1 January

The unified natural gas market, which unites that gas transmission system operators in Finland, Latvia and Estonia, starts its operation on 1 January.

The unified natural gas market, which unites that gas transmission system operators in Finland, Latvia and Estonia, starts its operation on 1 January. The principal market winners are the businessmen, because the payments for crossing the national borders of the unified entry tariff zone are cancelled, unified transmission tariffs are set, and market competition is promoted and way is marked to create a unified European Union gas market, states the unified natural gas transmission and storage system operator JSC "Conexus Baltic Grid" (Conexus).

All three countries have worked for several years and they have taken all required preparations with involvement of the operators, responsible ministries and regulators so that the unified natural gas market can starts its work already in several days. Initially the unified entry tariff zone will consist of two balancing zones: Latvia-Estonia and Finland. Latvia – Estonia balancing zone starts the work from 1 January, and Finland will join gradually.

Zane Kotāne, Chairperson of the Board of Conexus: "The commencement of the unified market marks a significant turning point for the energy sector, certifying that several countries can collaborate to strengthen jointly the energy independence of the countries and work at more efficient use of infrastructure internationally. For Latvia this means also more efficient use of Inčukalns Underground Gas Storage and availability thereof on larger scale. Besides, the Estonia-Finland interconnection “Balticconnector” which was opened in December and which joins the unified market, ends the isolation of Finland and thus allows us supplying natural gas to Finnish market where the industrial clients consume it for production purposes."

The unified transmission tariffs and cancellation of internal commercial borders ease materially the administrative burden of the sellers, and a transparent and simple tariff system is developed that has positive influence on the use of natural gas infrastructure. Income gained on the external borders of the unified market zone are divided among the three countries, which confirms the common purpose of the unified market member states to strengthen the energy safety in the region.

On 1 November, the unified IT platform of Latvia and Estonia has started to work which ensures capacities reservation, nominations and receipt of other services for sellers in the unified Latvia-Estonia balancing zone.