The company is assessing potential routes, technical feasibility, costs and timelines, with no final investment decision made.

The pipeline is estimated to be about 40 kilometers long and cost around €50 million.

Estonia's natural gas network was previously linked to Russia through Värska and Narva, but Elering board member Reigo Kebja said most of the national grid now operates as a dead-end system after those connections were shut down, limiting backup options during disruptions.

Gas now flows mainly from Latvia's Inčukalns storage facility and via the Balticconnector link with Finland.

Kebja said the system has held up so far, but rising peak demand — including possible new gas-fired power plants — is driving a review of additional safeguards, one of which is the possible new Estonia-Latvia link through the Värska area.

He added that any investment must avoid raising network tariffs for existing users, requiring enough new demand to offset costs.

New plant would drive up consumption

As of late last month, the TSO is also in talks on building up to 900 megawatts (MW) of gas-fired generation capacity by 2035.

Intended to help meet peak electricity demand, the additional capacity could sharply increase peak gas consumption, putting further strain on the existing transmission network.

Results of the preliminary studies for the new Latvia link are expected by year's end, when Elering also plans to begin public consultations on its gas network development plan.

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