The Finnish and Estonian Transmission System Operators (the TSOs), Gasgrid Finland Oy and Elering AS, organize a public consultation concerning Balticconnector capacity allocation mechanism – consultation is open until 17th of May.
Gas markets in the Baltic States and Finland have experienced fundamental changes since 2020. By January 2023, imports of Russian gas have ended, and a new floating LNG terminal has been commissioned in Inkoo, Finland, to secure gas supply in the region, resulting in rapid transformation from pipeline market to LNG. Other changes include capacity increases in Baltic gas transmission systems and Inčukalns gas storage in Latvia, and the commissioning of a new interconnector GIPL between Lithuania and Poland in 2022.
The implicit capacity allocation method currently applied in Balticconnector was originally designed as a temporary solution because of the planned full market integration between the Baltic States and Finland. Before the commissioning of Balticconnector interconnector and Finnish gas market opening, risks associated with congestion were considered manageable and their costs lesser than the establishment of capacity auctions. Furthermore, the TSOs and national energy authorities agreed to closely monitor the market developments and take corrective actions if needed. Since then, full market integration has been postponed, and the market fundaments have drastically changed as described above. Moreover, during periods of capacity scarcity, some market participants have started booking D-1 capacity without actually using it, rendering the capacity utilization ineffective. As a result, Balticconnector’s capacity allocation method needs to be re-assessed.
Balticconnector interconnection point plays important role what comes to gas deliveries between Finland and Baltic States. Gasgrid Finland and Elering have made an assessment on the regarding the possible capacity allocation mechanims which can be applied at Balticconnector.
The assessment and questions to the participants can be found here: The assessment and questions to the participants
The TSOs invite market participants to provide opinions which capacity allocation mechanism option is the preferred one from their operation point of view. How do the market participants, especially shippers and potential Floating LNG terminal users evaluate the risk of congestion at Balticconnector and its possible impacts on their decisions on utilizing the terminal?
Gasgrid Finland and Elering will be pleased to receive written opinions to the following e-mail addresses: customerservice@gasgrid.fi and airi.noor@elering.ee. Please include at the message header ‘BC CAM Hearing May 2023’.
Parties providing comments must separately notify whether their comment or part of it is confidential information that may not be published on the websites of the TSOs. The TSOs have the right to send opinions given to the relevant national regulatory authories (NRAs). Please provide your written opinions in English.
The opinions shall be submitted by Tuesday 17th of May at 23:59 EEST. -> The assessment and questions to the participants
For further information, please contact:
Esa Hallivuori, SVP Transmission of Gasgrid Finland Oy, esa.hallivuori@gasgrid.fi
Erkki Sapp, Head of Energy Market Department of Elering AS, erkki.sapp@elering.ee
