Elering's plans baffle Ida-Viru County gas consumers and Eesti Gaas

Enefit Power and Eesti Gaas have criticized Elering's idea to abandon the Narva and Värska gas pipelines. Eesti Gaas is prepared to take over management of the pipelines from Elering if the current owner deems the maintenance coasts of the pipelines too high.
Elering became the owner of Estonia's gas transmission network ten years ago. The concentration of the transmission networks in the hands of the system operator was supposed to ensure better competition and greater security of supply.
Now, however, as there is no longer any gas coming to Estonia from Russia, Elering is considering abandoning the gas pipelines to Narva and Värska. Elering also estimates that the long-term maintenance of the pipelines will cost over €200 million.
In addition, gas consumption is on the decline, with suggestions that in future the company could consider supplying customers in southern and eastern Estonia with LNG (liquified natural gas) by road or rail. However, Elering Board Chair Kalle Kilk told ERR last week, that in that case, the responsibility for doing so will not be with the system operator.
One of Ida-Viru' County's biggest gas consumers is AS Enefit Power, which uses natural gas in a standby boiler at the Baltic Power Plant and is also examining the possibility of building a new gas power plant in Narva. Enefit Power chief Andres Vainola is puzzled by Elering's suggestions.
"We are users of more than 90 percent of this gas pipeline to Narva. Being in this position certainly doesn't give us the investment certainty to go ahead with our plans for the Baltic Power Plant," Vainola said.
Eesti Gaas confirmed that they have not seen a significant drop in gas consumption in Ida-Viru County, nor South Estonia. 50,000 households and more than 500 businesses are steadily consuming almost half the natural gas sold in Estonia.
"If Elering thinks it is not reasonable to manage this pipeline, then since the pipeline once belonged to Eesti Gaas, we will take it back. And we would even be prepared to do that relatively soon. Then we can resolve all these concerns and problems and also start taking care of the development of this pipeline now," said Eesti Gaas board member Raul Kotov..
According to Kotov, while the pipelines that transport gas to Narva and Värska will require maintenance and in some places are in need of repairs, it will certainly not cost €200 million. Kotov added that there is also no benefit to building completely new gas pipelines, as the current ones have a lifespan of at least another couple of decades.
"So, gas consumers should not be concerned about security of supply, but about the performance of the system operator," said Kotov. "It is worth being concerned about why Elering has these kinds of ideas. The company, which is the system operator and has been entrusted with these pipelines should actually think about how to expand the use of gas, and how to keep the use of gas alive. All the more so as gas is, in fact, a fuel that in Europe has a promising future and also helps to meet all the environmental objectives."
According to Eesti Gaas management board member Raul Kotov, transporting liquefied gas by train to Narva, for example, once the gas pipeline has already been built, is not a sensible option.
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Editor: Michael Cole