One of the main challenges for natural gas traders, including the joint-stock gas supply company Latvijas Gaze, is that the level of natural gas consumption has dropped significantly since Russia’s full-scale invasion of Russia, the LETA News Agency was told by Aigars Kalvitis, board chairman at the company.
Kalvitis says that there is less uncertainty about natural gas supplies and prices right now, as compared to two years ago, and in 2024 it became clear that natural gas markets still have factors which require traders to be proactive in their activities and to constantly adapt their trading strategies to changing market conditions.
As an example he cited the fact that natural gas prices sank to their lowest level since June 2021 in March 2024, but since then they have increased again. Still, price levels are still significantly lower than in 2022 and 2023, which creates a more favourable situation for consumers.
Natural gas consumption in Latvia rose by 13.5% during the first 10 months of 2024, as against the same period the previous year, but the level has still not returned to prewar levels, according to data from the Central Statistical Bureau. A similar situation has been observed in other parts of Europe, as well.
Kalvitis: “Under such market conditions, the experience and knowledge which Latvijas Gaze has gained over the years about the natural gas market in Latvia and Europe, as well as our ability to be proactive in our operations under changing market conditions, have played a key role in these processes.”
At the same time, the board chairman added, it remains important for the company to ensure a high level of quality in its services. Despite competition from other providers, Latvijas Gaze has managed to retain the majority of its household customer portfolio since the market was fully opened to competition on May 1, 2023.
Asked about next year, Kalvitis said that there will be lots of challenges in 2025.
Latvijas Gaze is planning to work actively on innovation and digitalisation next year to improve access to services and to offer more flexible and sustainable solutions to consumers.
As has been reported in the past, the Latvijas Gaze Group earned revenues of EUR 159.819 million last year, which was 4.4 times less than in 2022, when natural gas prices were at a record high.
Source: BNS
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