Klaipėdos nafta AB and Latvenergo AS sign a long-term agreement on the use of Klaipėda LNG terminal
Riga, 2022-09-30 12:39 CEST --
Latvenergo AS, having participated in the long-term capacity allocation procedure for the Klaipėdos nafta LNG terminal organised by Klaipėdos nafta AB, has obtained the right to use the Klaipėdos nafta LNG terminal's 6 TWh annual capacity for regular supplies of natural gas for the next 10 years.
In Europe, LNG terminals are the most suitable alternative to ensure reliable supplies of natural gas, replacing the natural gas purchased from Russia. As of 1 January 2023, Latvia will completely stop buying natural gas from Russia. This has significantly increased the importance of the Klaipėdos nafta LNG terminal, which is currently the only guarantee of gas supply in the Baltic region.
In the procedure for long-term capacity allocation of the Klaipėdos nafta LNG terminal, four packages were auctioned, each with an annual capacity of 6 TWh. The auction resulted in a total of 24 TWh of regasification capacity being awarded in the Baltic market, with Latvenergo gaining 1/4 of the long-term capacity. The agreement between Klaipėdos nafta and Latvenergo provides for the regasification of a regular supply of 6 standardised LNG carriers, which Latvenergo will purchase on the open international market from the world's leading LNG companies and which will be transported annually from the terminal to Latvia – for the generation needs of the CHPP, for customers and for safety reserves.
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Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process), Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation) and Latvijas vēja parki SIA (development of wind parks in Latvia). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.