Finland, Estonia and Latvia Sign Deal for Single Gas Tariff Zone
2/14/2019
OSLO (Reuters) - Gas transmission operators of Finland, Latvia and Estonia signed an agreement on Thursday to set up a single gas transmission tariff zone for the three countries from the start of 2020.
The agreement unifies entry point tariffs on the external borders of the region and removes commercial interconnection points between countries.
"It will be used for transportation of the gas across Finland, Estonia and Latvia without additional charges," the three operators -- Finland's Gasum, Estonia's Elering and Latvia's AS Conexus Baltic Grid -- said in a statement.
The deal is expected to lead to higher market liquidity by making it easier for shippers and traders to sell gas to the whole region, the companies said.
Gas between the Baltic states and Finland will be piped across the Baltic Sea by Jan. 1, 2020, when a 7.2 million cubic metre per day pipeline called Balticconnector is due to start up.
The pipeline is being built to link the countries and help diversify the region's gas supplies, which largely come from Russia, by creating more links with other gas projects in Europe.
The agreement reached between the three operators outlines the cost structure for transmission and how related compensation and entry revenues will be distributed among them.
Related News
Related News
Sign up to Receive Our Newsletter

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Pipeline Project Spotlight
Owner:
East African Crude Oil Pipeline Company
Project:
East African Crude Oil Pipeline (EACOP)
Type:
TotalEnergies in discussions with a Chinese company after Russian supplier Chelpipe was hit by sanctions.
Length:
902 miles (1,443 km)
Capacity:
200,000 b/d
Start:
2022
Completion:
2025
Comments