Industry and Energy

Home page

Industry and Energy

Latvijas Gaze and Gazprom reach agreement on lowering gas prices

18 August 2010 14:50 (UTC +04:00)

Baku- APA-Economics. Agreement has been reached on lowering the gas purchasing price for Latvia, the Saeima’s Economy, Agricultural, Environmental and Regional Policy Committee was informed by gas utility Latvijas Gaze Director Adrians Davis. Agreement has been reached with the Russian gas supplier Gazprom on lowering the current purchasing price, The Baltic Course reported.

Davis will travel to Moscow in two weeks in order to speak about the method for calculating the new price, which will be in effect for three years.

The current agreement between Latvijas Gaze and Gazprom will be revised by the end of November at the latest, predicted Davis.

The company’s director was not able to give more specific information about the size of the price reduction, as talks are still ongoing.

As reported, discussions have been underway since the beginning of this year on obtaining a more favorable gas price for Latvia from Russian supplier Gazprom.

The Latvian utility today announced its opposition to the excise tax currently placed on natural gas. Talks with Gazprom are at an advanced stage, but will not bear fruit if the Russian company feels that a price reduction will be used to cover the new tax.

Latvijas Gaze representatives stressed that a reduction in the gas purchasing price was in everybody’s interests â€“ both commercial entities and households.