JSC "Latvijas Gāze" statement on JSC "Gaso" sales process
Eesti Gaas receives clearance to buy Latvian natural gas distribution network
Eesti Gaas, the largest privately-owned energy company in the Baltic and Finnish region, has received clearance by the Latvian government and the Competition Council to buy the Latvijas Gāze subsidiary Gaso and the Latvian natural gas distribution network. This transaction amounts to more than 120 million euros and constitutes one of the largest foreign investments in the Latvian economy.
“Eesti Gaas appreciates the trust of the Latvian government – we fully understand the importance of the distribution network as a strategic business and want to share our experience as gas network operator, develop the company, and offer the best services to the Latvian gas consumers. For our company, the acquisition of the distribution network in Latvia represents an important step in expanding the operations of Eesti Gaas to become the largest energy company with private capital in the region,” said Margus Kaasik, Chairman of the Board of Eesti Gaas.
Eesti Gaas signed an agreement on the acquisition of the Latvijas Gāze subsidiary Gaso in mid-April, and the transaction was cleared by the government in early June and by the Competition Council at the end of last week. The Latvian natural gas distribution network is 5,420 kilometres in length, and the company has over 375,000 customers.
“I am convinced that under the leadership of Eesti Gaas the JSC “Gaso” will continue strengthening and developing the Latvian gas supply system to the benefit of not only Latvia but the entire Baltic region,” said Aigars Kalvītis, Chairman of the Board of the JSC “Latvijas Gāze”.
Active in five markets – Finland, Estonia, Latvia, Lithuania and Poland –, Eesti Gaas has become the largest privately-owned energy company in the Baltic and Finnish region. Eesti Gaas sells pipeline natural gas, compressed natural gas (CNG) and liquefied natural gas (LNG), as well as operates the largest gas distribution network in Estonia. The company is actively engaged in international energy trade and develops a renewable energy portfolio in the form of solar energy and biomethane production and sales.
JSC “Latvijas Gāze”
Board
On the JSC “Latvijas Gāze”
Latvijas Gāze is one of the leaders of the Baltic energy industry.
Our goal is to consolidate the leading position of the Latvijas Gāze Group in the Latvian and Baltic energy market by becoming the customers’ first choice among natural gas suppliers and providing the most reliable natural gas supply for the entire region.
The wholesale and sale of natural gas to business customers is carried out in Latvia, Lithuania and Estonia. Following the opening of the Finnish gas market on January 1, 2020, Latvijas Gāze has successfully started natural gas trading in Finland as well. In the household segment, Latvijas Gāze is the biggest and most prominent natural gas trader in Latvia.
After Latvia regained its independence in 1991, a joint state-owned company “Latvijas Gāze” was established by merging the Latvian gas infrastructure and institutions. The privatisation of the company was commenced in 1997 and completed in 2002. Since February 15, 1999, the shares of the JSC “Latvijas Gāze” have been quoted on the Nasdaq Riga stock exchange. Taking into account the requirements of the European Union for the establishment of the natural gas market and the expiry of the privatisation agreement between the state and the shareholders of Latvijas Gāze, the unified transmission and storage operator JSC “Conexus Baltic Grid” was separated from Latvijas Gāze in early 2017, followed by the separation of the distribution system operator JSC “Gaso” on December 1, 2017.
Contact information:
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