Gas prices are high on world exchanges. The company “Latvijas gāze” forecasts that from July 1, tariffs will at least double.
In order to weaken Russia’s military capabilities in Ukraine, Latvia must also give up gas from its nefarious neighbor as soon as possible. It is unclear at this stage how well this will be achieved. Only one thing is known – the next heating season will be very, very expensive.
Gas is Russia’s second main budget pillar after oil. Last year, Latvia paid Russia about 340 million. Huge money from European countries allowed Russia to build up reserves and prepare an army for many years. Despite warnings from the Baltics and Poland about aggressive intentions, Europe saw Russia as a profitable business partner and continued to trade. It was only after the invasion of Ukraine that Western Europe realized that the money paid to the Kremlin was financing the war.
Latvia can only be completely disconnected from Russian gas pipelines next year. To do this, at least one liquefied gas terminal in the Baltics must be built and somehow experience the next heating season.
Jānis Vitenbergs
Minister of Economics, National Association
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“Yes, this is the offer of the Ministry of Economics, coordinating this date with Estonia and Finland, because these countries have also said that January 1 would be the date when they would be ready to give up. it would indeed be real and not populist. “
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Latvia has a single gas market with Lithuania, Estonia and Finland. Its total consumption is about 60 terawatt hours per year. The largest recipient is Finland, which can only get gas from a Russian or Klaipeda terminal. Klaipeda can provide 30 terawatts, or half of the region’s consumption. Poland will also connect to the Lithuanian gas system in May, so the other countries in the region are likely to have even less Klaipeda resources.
The stability of supplies to the whole region is ensured by the Inčukalns gas storage, where gas can be stored in summer and removed during the heating season. However, it also cannot cover the missing capacity.
Deficit clearing terminal in Paldiski. Estonia and Finland have committed themselves to building it by October, and Latvia is also invited to participate.
