Natural Gas Transmission System Operator
Foundation for a regional gas market in the Baltics now in place

Today, the Prime Ministers of the Baltic States have signed a declaration on development of a single regional gas market.

“The declaration lays a foundation for the implementation of a strategic goal of Lithuania, i.e. development of a competitive and liquid gas market and achieving security of gas supplies. The declaration gives a green light for the merging of the national gas markets, and provides for concrete steps aimed at tangible reforms required in the gas sector to make sure that the single gas market in the Baltics becomes functional.  When this process is completed, gas supply across the region will be simpler and gas prices to the customers will be more affordable”, said Saulius Bilys, CEO of AB Amber Grid, Lithuania’s natural gas transmission system operator.

The regional gas market plan provides for the merging of the gas markets of Lithuania, Latvia, and Estonia into a single area by developing a single system of entry and exit points, including a single virtual trading point, a regional gas market, and a single balancing area. Another benefit of the single regional market in the Baltics is that it will secure an improved access to Klaipėda LNG terminal and other alternative sources of gas supply to every country in the region.

According to the plan, a single regional gas market in the Baltics becomes operational in 2020.  When the gas interconnection between Estonia and Finland is in place, it is expected that the single regional market is also joined by Finland

In the process of development of a regional gas market in the Baltics, AB Amber Grid will coordinate with the other national gas transmission system operators the principles and rules for the distribution, balancing, trade in the capacities of the single regional market area, and other issues relevant to the wholesale market. The documents will subsequently be subject to public consultations involving market players and other stakeholders, and subject to approval by national regulatory or other public authorities.

According to plan, national regulatory authorities and ministries in charge of the energy sector will be required to draft and agree on principles and documents, and to initiate appropriate legislative amendments required for operation of the single regulation regime, pricing of transmission services, and market rules. 

Any steps taken to reform the sector will require unprecedented efforts of international cooperation across the region.   

Smooth operation of the single market will require further investments into the infrastructure. One of such projects planned by AB Amber Grid seeks to enhance the through put capacity of the gas interconnection between Latvia and Lithuania. A feasibility study (detailing implementation parameters of the project) is scheduled for 2017. The project will further facilitate use of Incukalns Underground Gas Storage Facility (in Latvia) by players of the gas market in Lithuania, and prospectively those based in Poland.

A dedicated working group involving representatives of the national transmission system operators, ministries in charge of energy, and national regulatory authorities of the entire Baltic region coordinates development of the regional market.


 Background Information on AB Amber Grid

The natural gas transmission system operator, AB Amber Grid, ensures reliable and safe natural gas transmission (transportation through high-pressure gas pipelines) to system users and the operation,  maintenance and development of the natural gas transmission infrastructure facilities. Shares of AB Amber Grid are listed on the Secondary List of the Stock Exchange NASDAQ OMX Vilnius. AB Amber Grid's control stake is held by the parent company, UAB EPSO-G, which also controls the control stakes of the electricity transmission system operator, AB  LITGRID, and the energy exchange operator,  UAB BALTPOOL. UAB EPSO-G, which is 100-percent controlled by the Ministry of Energy of the Republic of Lithuania, is in charge of the implementation of  Lithuania's gas and electricity infrastructure  strategic development goals, projects for the integration into the EU energy markets,  and seeks to implement the EU Energy Union goals.

For more detailed information please contact:

Vytautė Šmaižytė
AB Amber Grid
Tel. +370 5 232 77 50, mob. +370 640 722 92


To top