Baltic gas operators sign agreement in next step toward single gas market
The Baltic states' natural gas transmission system operators have agreed to implement an implicit capacity allocation model which will become the first step toward integrating the national gas markets of Estonia, Latvia and Lithuania, Lithuania's Amber Grid said on Tuesday.
Amber Grid said that it had signed a cooperation agreement on the implementation of the implicit capacity allocation model with Latvia's Conexus Baltic Grid and Estonia's Elering. The new model is planned to be implemented by next summer.
"This should improve competition in the Baltic gas market and help ensure optimal prices for consumers and gas flows between the Baltic countries," Danas Janulionis, head of strategic planning at Amber Grid, told BNS. "This will be the first step toward the integration of the Baltic gas markets."
A single Baltic gas market is expected to become operational in 2020. Finland is also expected to join the single market upon the completion of a gas pipeline connecting Estonia and Finland.
Editor: Editor: Aili Vahtla
Source: BNS