Most of the liquefied petroleum gas (LPG), which is called autogas, is still supplied to Latvia from Russia. However, sanctions will come into force in December The EU is banning it. Local companies are thinking about where to replace volumes. One of the options is Kazakhstan. But will Russia allow transit?
"This year, for five months, Latvian enterprises imported liquefied petroleum gas worth 46 million euros, while retaining the Russia has a leading position among suppliers of petroleum gas," writes the Delfi publication. It noted that the Competition Council had warned about the risks with the entry into force of the ban on the import of Russian liquefied petroleum gas and noted that market participants would have to look for alternative sources of supply and logistics solutions.
According to Delfi, the largest companies in Latvia that sell petroleum gas are Latvijas Propana gase and Intergaz.
The head of the Legal Department of Latvijas Propāna gāze, Alexey Margevich, said that currently Latvijas Propāna gāze is negotiating with US-registered and Norway has agreed to purchase autogas in order to be able to supply it on tankers owned by it to the Latvijas Propana gaze marine terminal in Riga.
At the same time, the company is ready to start supplying gas by rail from Kazakhstan, as they have already found suppliers there.
"In this regard, it is important that there be an opportunity for transit to use the Russian railway, through which goods are delivered not only from Russia, but also from Kazakhstan, China and other countries," said Alexey Margevich.
Latvia expects that the ban on the import of Russian gas will affect the price increase, but so far they hope that this will not affect the entire economy of the country.