Enefit Power CEO Raine Pajo informed Environmental Board Director Rainer Vakra and Climate Minister Erkki Keldo (Reform) that the company would use shale oil in the plant's reserve boilerhouse under an exemption granted by the board on October 21.

The order permits the preventive use of shale oil if natural gas supplies are at risk of disruption or restriction, or if district heating risks becoming unaffordable for Narva residents.

In his letter, Pajo said price volatility, rising winter demand and the risk of further supply disruptions threatened both natural gas security and the affordability of district heating. He warned that heating could become unaffordable even without an actual interruption in gas supplies.

"Given the current geopolitical and economic situation, Narva also considers it necessary to start using shale oil," the CEO wrote, pointing to Europe's lower-than-usual gas storage levels, high natural gas prices and winter supply risks.

He also cited the ongoing Middle East crisis, which drove European gas prices to a four-year high in October.

Shale oil use 'temporary and preventive'

Paju called the measure temporary and preventive, saying it would reduce Narva's dependence on volatile imported gas and help keep district heating affordable.

The amount of shale oil used, he added, would depend on gas supply conditions and the city's heating demand.

Enefit Power said the gas market situation and Narva residents' vulnerability justified using shale oil from November 1 if Balti Power Plant's Unit 11 was uncompetitive or out of service, formally notifying the Environmental Board of its plans.

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