Eesti Gaas signs agreement to purchase Latvian gas network
Eesti Gaas, the largest privately owned energy company in the Baltic and Finnish region, has signed an agreement to acquire the Latvian gas distribution network owned by Gaso, a subsidiary of Latvijas Gaze, for 120 million euros.
The completion of the transaction is subject to approval from the Latvian Competition Authority and permission from the Latvian government, as Gaso is considered a strategic asset.
“We see a future in gas and know how to do this business and grow it. We hope that we can share our experience as a gas network operator and that the change of ownership will help the company continue to grow and provide the best service to Latvian gas consumers,” said Ain Hanschmidt, Chairman of the Board of Eesti Gaas.
“With the support of Infortar, Eesti Gaas has developed from a local gas supplier to the largest privately owned energy company in the region, with about 70% of our sales volumes coming from foreign markets. The acquisition of the Latvian gas network is another important step in the expansion of Eesti Gaas as a Baltic Sea energy company. The Latvian gas network is almost four times larger than the one in Estonia, serving about 400,000 consumers,” added Hanschmidt.
“Like the rest of Europe, we see gas playing an important role as a transition fuel and a supporter of renewable energy. The prospect of gas use encourages us to invest in gas networks – we have signed the agreement and are waiting for the decision of the Latvian government,” said Hanschmidt.
Eesti Gaas operates in Finland, Latvia, Lithuania and Poland under the Elenger brand. Eesti Gaas provides natural gas to customers in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG) and manages the largest gas network in Estonia. The company is actively engaged in international energy trade and is developing a renewable energy portfolio through the production and sale of solar energy and biomethane.
The balance sheet of Infortar, the owner of Eesti Gaas, amounts to 1.1 billion euros and its equity capital amounts to 569 million euros. Infortar operates in five countries, with the main business areas being energy, shipping, and real estate. In total, Infortar owns 47 subsidiary companies. Infortar holds a stake of almost 41% in Tallink Grupp AS, 100% of Eesti Gaas AS, and a diversified and modern real estate portfolio.