Latvijas Gāze will not meet amount of gas required for households

JSC Latvijas Gāze (LG) will not be able to provide the public trader's obligation under the Energy Law for the storage of the required amount of natural gas stocks in Inčukalns underground storage by August 31, 2022, according to the company's statement to Nasdaq Riga on August 10.

As reported, the government reserved gas owned by JSC “Latvijas Gāze” (LG) in the Inčukalns underground gas storage for households of Latvia.

Amendments to the Energy Law coming into force on August 11 instruct the public trader of natural gas to ensure that, no later than August 31 of each year, the amount of natural gas required for the consumption of households (related users) for the period from October 1 to April 30 of the following year is stored in the Inčukalns underground storage facilities. The amount required would be 1.15 terawatt-hours (TWh).

LG stated that the amount of natural gas belonging to JSC Latvijas Gāze, located in the Inčukalns underground gas storage facilities, amounts to 0.75 TWh. On the other hand, as of August 31, 2022, taking into account the contractual obligations already undertaken, the amount of natural gas owned by AS Latvijas Gāze and stored in the Inčukalns underground facilities, will amount to 0.69 TWh.

According to the Energy Law, in a situation where an existing public trader (LG) fails to fulfill the statutory task, the functions of the public trader are taken over and performed by Latvenergo State JSC.

LG has repeatedly informed the Latvian government and the Ministry of Economics responsible for the development of the energy sector about this, as well as requested to call a meeting with all parties involved in changing the potential public trader, in order to find a constructive and coherent action plan that has not yet taken place, the LG statement said.

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