Elering buys out Gazprom from gas network
Estonian state-owned power grid operator Elering today purchased Gazprom's 37-percent stake in the nation's gas transmission network.
Elering brought a little over 51 percent at the beginning of the year, signalling then intent to buy up the remaining shares.
The company now owns 89 percent of AS Võrguteenuse Valdus, which in turn owns Estonia's gas transmission network. Elering paid 19.9 million euros for Gazprom's share and 27.5 million for the initial 51 percent from Finnish Forum Heat and Gas OY.
Itera Latvija is the last major shareholder, besides Elering, with 10 percent. Elering is planning to merge with AS Võrguteenuse Valdus once it has obtained 100 percent.
The reason for the purchase lies in EU directives, which have been adopted by Estonia and which say the seller of gas and the network operator can not belong to the same company. Eesti Gaas is the seller of gas in Estonia, and is owned by Fortum Heat and Gas OY (51 percent) and Gazprom (37 percent).
The network itself is 885 kilometers long, with three gas measuring stations and 37 distribution stations with the capacity of 14 million cubic meters per day.