Exec Brushes Off Speculation of Price Hike in Natural Gas ({{commentsTotal}})

Source: Photo: Reuters/Scanpix

A Lithuanian newspaper report on Wednesday that claimed Latvia and Lithuania face a major natural gas price hike next year was called untrustworthy by Eesti Gaas executive Raul Kotov.

He said gas prices will probably not rise in Estonia next year because competition will not permit it, reported Postimees.

Eesti Gaas, in which Russia's Gazprom has a major stake, renews its price agreement with Gazprom each year. A contract for this year has yet to be reached.

Although Eesti Gaas has a monopoly in Estonia, Kotov said the company is feeling pressure from other power sources.

"Considering the competition situation, there is no reason to raise the price in 2014," he said.

The Lithuanian newspaper Verslo Zinios reported on Wednesday that the price of natural gas may rise by as much as a quarter in Latvia and Lithuania next year.

"I would be very careful with that article because price negotiations are currently being carried out in Lithuania," Kotov said.