Eesti Gaas cuts the gas price by more than half
Starting from February, Eesti Gaas will reduce the gas price of the flexible package for household customers by 52% – the new price is 0.84 euros/m3 including VAT instead of the current 1.75 euros/m3. The company had previously announced a 30% price cut in February. The new household customer price is known to be the lowest in Estonia, falling below the compensation level set by the state for household consumers.
“A warm winter, full gas storages and new delivery routes have brought the world market price of gas back to the pre-war level, which allows us to lower the selling price for household customers more than originally promised. For the first time, the price of gas has also sunk below the level of energy compensations that came into effect in October, which allows the state to save costs,” said Margus Kaasik, Chairman of the Board of Eesti Gaas.
“Today, in the middle of the heating season, we can say that not only has the price of gas gone down, but there are signs that gas is returning to competition. Several of our business customers, who used alternative fuels in the meantime, are already coming back, because it is already more affordable to heat and produce with natural gas than, for example, with light fuel oil or liquid gas, and driving a car is already cheaper with CNG than with petrol,” said Kaasik.
“Gas will continue to play an important role in diversifying Estonia’s energy portfolio and supporting the green transition, as natural gas is the most natural ally of renewable energy thanks to its cleanliness and flexibility, enabling energy production on days without wind blowing or sun shining. Gas is essential for industries, and it remains a convenient and reasonable source of energy for homes as well,” said Kaasik.
In mid-January, this year’s first shipload of liquefied natural gas (LNG) from the United States arrived at the Lithuanian port of Klaipeda on behalf of Eesti Gaas. The next cargo will be brought to Klaipeda in March. Last year, Eesti Gaas procured five LNG cargos of Norwegian and US origin which came through Klaipeda terminal.
Eesti Gaas offers customers natural gas in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG), and operates Estonia’s largest gas network. 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.
Eesti Gaas operates in Finland, Latvia, Lithuania and Poland under the Elenger brand name. The group has a total of 50,000 customers. Since 2016, when the company was acquired by Infortar, one of the largest investment companies in Estonia, Eesti Gaas has grown to become the largest private energy company with more than 70 percent of the company’s sales coming from export markets.