Tuesday, September 22, 2020
Home Finance & Regulations Baltics and Finland towards regional gas market integration

Baltics and Finland towards regional gas market integration

Energy ministries, regulators and transmission system operators from Estonia, Finland, Latvia and Lithuania agreed on a roadmap establishing a process for the future regional gas market integration of their respective countries.

This common regional gas market will be the first four-country wide cross-border gas market merger in the European Union. It will reinforce the security of supply in this region strongly dependent on imported gas, increase market liquidity and foster competition, resulting in affordable gas prices and high-quality service for all consumers in these countries.

The Regional Gas Market integration process started as a political process in December 2015 when the Baltic States’ Prime Ministers endorsed the Regional Gas Market Development Action Plan and invited Finland to take part in this process. The objective is to improve market liquidity, integration and competition, ensuring affordable gas prices and high-quality service, thus being attractive for existing and new market participants.

Key actions taken towards a market integration include the creation of a joint tariff area between the four countries and deeper market integration through investigating potential bottlenecks and identifying IT-systems and commercial operating common models.

Market integration is a clear opportunity for the Baltic States and Finland to reap all the benefits of their existing and future infrastructure such as gas storage facilities, LNG terminals, the Balticconnector and the Gas Interconnection Poland–Lithuania (GIPL). It will remove many of the remaining divisions between four relatively small and separate national markets, attracting suppliers and significantly increasing competition.

Most Popular

The untapped renewable energy potential of the Black Sea region

Achieving energy security is at the top of the authorities’ agenda for many countries in the region. Indeed, the Black Sea untapped energy potential could actually serve as a bridge between today’s use of resources and a future based on renewables.

Amber Grid launches preparatory work for connecting GIPL to the transmission system

After completing the directional drilling and laying the gas pipes for the GIPL under the country’s widest rivers on schedule, Amber Grid has begun preparations for connecting the pipeline to the gas transmission system.

Ukraine’s energy efficiency hindered by a state budget which contradicts the Green Deal

Ukraine is very gradually but surely becoming energy efficient and independent of external energy supplies. However, the draft state budget for 2021 supports the coal industry contradicting the statements of the Green Deal.

We must prepare for the new world – interview with MET Group CEO Benjamin Lakatos

Benjamin Lakatos, CEO of MET Group, speaks about the importance of energy diversification and the role that both natural gas and renewables will play in the company’s future.