HomeNewsFinland, Estonia and Latvia Sign Deal for Single Gas Tariff Zone

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.

source: Baltic Connector Oy

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.

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