Gazprom and Eesti Gaas address issues of bilateral co-operation

St. Petersburg hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Aarne Saar, Chairman of the Eesti Gaas Supervisory Board.

The parties addressed the bilateral co-operation issues, placing an emphasis on Russian natural gas supplies to Estonia in the medium term.

Besides, the meeting considered the Third Energy Package provisions in regard to Eesti Gaas and the impact of this legislative package on the Estonian energy market.

Background

Eesti Gaas deals with gas purchase, transmission and distribution in Estonia until January 2014. The company's ownership structure is split among Gazprom (37.03%), Fortum Heat and Gas OY (51.38%), Itera Latvija (10.02%) and other shareholders.

In pursuance of the Estonian Law on Natural Gas, Eesti Gaas span off a gas grid operator in January 2014 – EG Vorguteenus, with the full shareholding acquired by Vorguteenus Valdus. Gazprom obtained a 37.03% stake in Vorguteenus Valdus and retained 37.03% in Eesti Gaas.

Nowadays Eesti Gaas owns the gas distribution system of Estonia and is engaged in the downstream business of the gas industry.EG Vorguteenus owns and operates the gas transmission system of the Estonian Republic.

Russian natural gas is supplied to Estonia under long-term contracts effective through to 2015. Gazprom supplied Estonia with 0.7 billion m³ of natural gas in 2013.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/22122014/gazprom-and-eesti-gaas-address-issues-of-bilateral-co-operation/