LG will not construct gas pipes to Rezekne and Ventspils next year - Savickis
The council at the joint-stock gas company "Latvijas gaze" (LG) has adopted a decision to cut the company^apostrofs;s investment program for 2003, which means that LG will not construct gas pipelines to Ventspils and Rezekne as planned earlier, Juris Savickis, president of "Itera Latvija" (shareholder in LG), says in an interview in the newspaper "Kommersant Baltic".
The council at the joint-stock gas company "Latvijas gaze" (LG) has adopted a decision to cut the company's investment program for 2003, which means that LG will not construct gas pipelines to Ventspils and Rezekne as planned earlier, Juris Savickis, president of "Itera Latvija" (shareholder in LG), says in an interview in the newspaper "Kommersant Baltic".
According to Savickis, slashing the investment program also means that LG will suspend reconstruction of the Incukalns underground gas storage facility, because the company will not have enough money to even carry out planned repairs.
According to Savickis, LG's decision came as a result of the Latvian regulator's actions, which banned the company from raising gas supply tariffs according to the current market situation.
Savickis stresses that the regulator, in banning an increase in gas supply tariffs for Latvia's residents who live in gasified areas, has also prevented a large number of residents from using natural gas because their apartments have not been switched to gas mains.
According to Savickis, the regulator has made LG operate on the edge of its possibilities, and it is possible that supplies of Russian natural gas to Latvia could be cut in the near future. Savickis, however, does not believe that Russia will halt gas supplies completely.
"Itera Latvija" currently continues work on construction of a gas pipeline in Lithuania because there are much better business conditions in this country, which stipulate that the company that constructs a gas pipe can become its owner, while Latvia's legislation says that gas pipes can only belong to LG.
Kristaps Ceplis LETA
Copyright © LETA
According to Savickis, slashing the investment program also means that LG will suspend reconstruction of the Incukalns underground gas storage facility, because the company will not have enough money to even carry out planned repairs.
According to Savickis, LG's decision came as a result of the Latvian regulator's actions, which banned the company from raising gas supply tariffs according to the current market situation.
Savickis stresses that the regulator, in banning an increase in gas supply tariffs for Latvia's residents who live in gasified areas, has also prevented a large number of residents from using natural gas because their apartments have not been switched to gas mains.
According to Savickis, the regulator has made LG operate on the edge of its possibilities, and it is possible that supplies of Russian natural gas to Latvia could be cut in the near future. Savickis, however, does not believe that Russia will halt gas supplies completely.
"Itera Latvija" currently continues work on construction of a gas pipeline in Lithuania because there are much better business conditions in this country, which stipulate that the company that constructs a gas pipe can become its owner, while Latvia's legislation says that gas pipes can only belong to LG.
Kristaps Ceplis LETA
Copyright © LETA
