Baltic Energy Market Interconnection Plan GRIP 2017

3.4.4 MARKET INDICATORS, SUPPLY AND DEMAND Latvia’s gas supply system is not connected to the EU’s common gas grid, and Latvia has one main gas supplier: JSC Gazprom. However, since the beginning of 2015 when the Klaipėda LNG terminal commenced its operation, it has been possible to supply natural gas to Latvia from this terminal.

18 20 TWh

CONSUMPTION OF PRIMARY ENERGY SOURCES (SOURCE CSB)

14 16 12 10

0 8 6 4 2

2015

2016

2010

2011

2012

2013

2014

Figure 3.22: Natural gas sales in Latvia (TWh)

The largest consumers of natural gas are the power company JSC “Latvenergo” and heat supply enterprises. The Riga region accounts for about 65% of the total natural gas consumed in Latvia. Demand for natural gas in Latvia mainly is driven by natural gas price, weather conditions and changes in natural gas consumption for power production. Consumption of natural gas is also influenced by general development of the econ- omy, isolation of houses and, largely, usage of alternative energy sources. The last years were not favourable for increase of demand for natural gas. Regarding the future, due to an energy policy in Latvia where renewables are preferred over conventional fuels, we cannot expect an increase of natural gas consumption.

16 TWh

CONSUMPTION OF PRIMARY ENERGY SOURCES (SOURCE CSB)

14 12 10

14

12

12

12

10

10

10

10

10

10

8 6 4 2

0

2021

2022

2023

2024

2025

2016

2017

2018

2019

2020

Figure 3.23: Forecast of natural gas sales in Latvia (TWh)

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BEMIP Gas Regional Investment Plan 2017