Latvian gov't seeks controlling stake in gas storage operator

RIGA, Dec. 19 (Xinhua) -- The Latvian government has decided to acquire shares in Conexus Baltc Grid gas transmission and storage operator in order to gain control over the strategic underground gas storage facility in Incukalns outside Riga, the Economics Ministry said Tuesday.

On Dec. 15, Latvian state-owned power transmission system operator Augstsprieguma Tikls clinched a deal with German energy company Uniper Ruhrgas International to purchase 18.3 percent of Conexus Baltic Grid shares currently owned by the German company. The price and other details of the transaction have not been disclosed.

The Latvian government is holding talks with Russian gas giant Gazprom and Itera Latvija natural gas dealer, which together own most of Conexus Baltic Grid shares.

Latvia wants to take over the Incukalns natural gas storage facility to pave the way for the creation of a single Baltic gas market.

Representatives of the Economics Ministry explained that the controlling stake in Conexus Baltic Grid is needed if Latvia is to ensure its energy independence.

Latvia, which opened up its gas market to free competition this past April, is also expected to split up its gas monopoly Latvijas Gaze to comply with EU laws.

Latvijas Gaze will keep selling natural gas, but its shareholders -- Gazprom, Itera Latvija and Uniper -- are required to sell off their shares in Conexus Baltic Grid by December 31, 2017. The Latvian government now wants to take control of the gas storage facility.

Latvian Economics Minister Arvils Aseradens said that the acquisition of the gas storage facility would be a step closer to the creation of the single Baltic and Finnish gas market by 2020. Enditem