First Latvian Natural Gas Market Player became a participant of the GET Baltic Gas Exchange
It is pleasure to announce that the first Latvian natural gas market player AJ Power Ltd. has been registered on the Natural Gas Exchange. Currently, 55 participants from all three Baltic countries have registered on the GET Baltic’s Natural Gas Exchange. The establishment of the Regional Natural Gas Exchange is a strategic goal of GET Baltic. Therefore, the increasing number of Exchange participants from Latvia and Estonia confirms the need of the single gas trading platform for the whole Baltic countries. For the time being, the registered Exchange participants from the Baltic countries have an opportunity to sell and (or) buy natural gas at the Lithuanian virtual trading point. According to the reinforced BEMIP Action plan a unified gas trading platform for the regional gas market should be implemented by the 2020.
“We are going to continue to pursue the long-term goal of GET Baltic to become operating natural gas exchange of the Baltic countries that creates value for the entire region’s economy by increasing the competitiveness and liquidity of the market. We are also going to facilitate and develop trading procedures on the gas exchange and the products offered so that the changing needs of the gas market players would be satisfied as much as possible” – staited the CEO of GET Baltic, Giedre Kurme.
AJ Power has started its activities in April of 2014. The core business activity of the Company has been associated with the electricity wholesale business, providing support for producers of electricity in finding the best ways to sell the electricity on the market. Ms. Gundega Namniece, Head of Wholesale of AJ Power shared the Company’s plans as being the participant of the GET Baltic Natural Gas Exchange:
What are AJ Power plans as being the participant of GET Baltic Natural Gas Exchange?
We are looking forward to this opportunity to finally start gas trading on the gas exchange. At the moment the future of gas trade in Latvia is unclear, however we are optimistic and hope to start gas supply to consumers as soon as possible.
What is your opinion about creating the single Natural Gas Exchange for the Baltic countries?
We are positive about creating a regional gas exchange covering pan-Baltic region due to several reasons. Firstly, better liquidity of the gas market, meaning bigger trading volumes and thus more realistic gas prices representing both supply and demand side. This factor will foster closing deals between different market participants effectively. In addition, a larger common market might also result in cheaper balancing costs. Secondly, uniform and homogeneous exchange regulations for the entire region will minimize the administrative burden and the associated costs and hopefully will result in minimized trading fees. But more importantly, it will facilitate suppliers’ operations in foreign markets and will hopefully result in higher competition.
What benefits can the single Gas Exchange give for the Latvia’s gas market participants?
We expect that an established pan-Baltic gas exchange will facilitate a faster real market liberalization process and creation of wider choices for consumers.
AJ Power Ltd. is the 55th company registered on the GET Baltic Gas Exchange. A list of exchange participants is regularly updated and published on the UAB GET Baltic website: www.getbaltic.com, in the column Register of Exchange Participants.