Elenger parent company received permission to purchase the Latvian gas network
Eesti Gaas, the largest privately owned energy company in the Baltic-Finnish region, received approval from the Latvian government and the Competition Authority for the acquisition of Latvijas Gaze’s subsidiary Gaso and the Latvian natural gas distribution network. The cost of the purchase transaction exceeds 120 million euros and it is known to be one of the largest foreign investments in the Latvian economy.
“We appreciate the Latvian government’s trust – we fully understand the importance of the distribution network as a strategic company and we want to share our experience as a gas network operator, develop the company and offer the best service to Latvian gas consumers,” stated Margus Kaasik, Chairman of the Management Board of Eesti Gaas.
“In the big picture, it is a logical development – the gas network of Estonia and Latvia has been built as a whole, it is already one system in its essence. For our company the acquisition of the distribution network in Latvia is an important step in the expansion of Eesti Gaas to become the largest energy company with private capital in the region,” stated Kaasik.
Eesti Gaas signed an agreement to acquire Gaso, a subsidiary of Latvijas Gaze, in mid-April this year, the government approved the transaction in early June, the Competition Authority at the of last week. The Latvian natural gas distribution network stretches to 5,420 km, the company has more than 375,000 customers.
“I am sure that under the leadership of Eesti Gaas, Gaso will continue to strengthen and develop Latvia’s gas supply system, which will benefit not only Latvia, but the entire Baltic region,” said Aigars Kalvītis, Chairman of the Board of Latvijas Gāze.
Operating in five markets – Finland, Estonia, Latvia, Lithuania and Poland – Eesti Gaas has grown to become the largest private energy company in Finland and the Baltic region. Eesti Gaas offers its customers natural gas in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG) and manages 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.
Latvijas Gāze is one of the leaders of the Baltic energy industry, dealing with gas wholesale and retail in the Baltic States and Finland. AS Latvijas Gāze was established in 1991, combining the Latvian gas infrastructure and institutions. The head office is located in Riga, and since February 15, 1999, shares of AS Latvijas Gāze have been listed on the Nasdaq Riga stock exchange (GZE1R).