latvia’s Natural Gas Market: Adapting to Change
Latvia‘s natural gas market is in a state of flux, marked by both challenges and opportunities. aigars Kalvītis, Chairman of the Board at Latvijas gāze, highlights the ongoing impact of the war in Ukraine on consumption patterns despite stabilized prices and supplies.While market conditions have improved compared to the previous two years, uncertainties remain. Natural gas prices dipped to a low not seen since june 2021 in March 2024 but have since rebounded. “As an example, he cited the fact that natural gas prices reached their lowest point as June 2021 in March 2024, but have experienced an increase since then. Simultaneously occurring,the price level is still significantly lower than in 2022 and 2023,creating more favorable conditions for consumers.” said Kalvītis. Even though Latvia has seen a 13.6% increase in natural gas consumption during the first ten months of 2024, compared to the same period in 2023, it hasn’t reached pre-war levels, reflecting a trend observed across Europe. In this dynamic landscape,experience and adaptability are key. “In such market conditions, the years of experience and knowledge of the natural gas market in Latvia and Europe, as well as the ability to be proactive in its operations in changing market conditions, play an vital role”, emphasized Kalvītis. Maintaining high service quality remains a priority for Latvijas gāze despite intensified competition. The company has retained a majority share of its household customer base as the full liberalization of the household market on May 1, 2023.Looking Ahead to 2025
Kalvītis anticipates a challenging year ahead in 2025. Latvijas gāze is committed to leveraging innovation and digitization to enhance service accessibility and offer customers more flexible and enduring solutions. This strategic move positions the company to navigate the evolving energy landscape effectively. The company closed 2023 with a turnover of 159.819 million euros, a significant decrease from 2022’s figures fueled by soaring natural gas prices. Latvijas gāze boasts a share capital of 55.86 million euros and operates across the Baltic region, providing widespread natural gas wholesale and retail services to businesses in Latvia, Estonia, Lithuania, and Finland. The company also serves residential customers within Latvia.## Latvian Gas Market: Navigating Change with Aigar Kalvītis
**Archyde sits down with Aigars Kalvītis, Chairman of the Board at Latvijas gāze, to discuss the challenges and opportunities shaping the latvian natural gas market in a time of global uncertainty.**
**Archyde:** Thank you for joining us today, mr. Kalvītis. The Latvian natural gas market has undeniably been in flux since the beginning of the war in Ukraine. Could you offer our readers your perspective on the current state of the market?
**Kalvītis:** You’re very welcome. It’s certainly been a time of significant change. While thankfully, we’ve seen prices stabilize and supplies remain steady, the war’s impact on consumption patterns is ongoing. Market conditions are, thankfully, improving compared to the past two years, but uncertainties remain.
**Archyde:** We’ve seen natural gas prices fluctuate considerably. Does this volatility pose a long-term threat to Latvijas gāze and consumers?
**Kalvītis:** There was indeed a period when prices dipped as low as they had been since June 2021, but we’ve seen a rebound since March. However, they are still considerably lower than in 2022 and 2023, providing more favorable conditions for consumers. It underscores the importance of adaptability and forward-thinking strategies.
**Archyde:** Latvia has recorded a 13.6% increase in natural gas consumption during the frist ten months of this year compared to last. This increase still hasn’t reached pre-war levels.How do you interpret this trend?
**Kalvītis:** This pattern mirrors what we’re seeing across Europe.
It suggests that while there’s a resurgence in demand, lingering uncertainty lingers and factors like energy saving measures are contributing to a cautious return to pre-war consumption levels.
**Archyde:** Looking ahead to 2025, what are the biggest challenges you anticipate Latvijas gāze facing?
**Kalvītis:** We expect 2025 to be a challenging year, but also one full of opportunities. We’re dedicated to leveraging innovation and digitization to enhance service accessibility and offer more flexible and sustainable solutions. This ongoing focus on adapting to an evolving energy landscape is crucial.
**Archyde:** You also mentioned the importance of experience and knowledge in navigating these changes, notably in the context of market liberalization.Can you elaborate on how Latvijas gāze leverages its experience to retain customer trust and loyalty?
**Kalvītis:** Our decades-long experience in the Latvian and European markets has certainly positioned us well during uncertain times.
We consistently strive to provide high service quality and build strong relationships with our customers.
**Archyde:** what message would you like to leave our readers with as it pertains to the future of natural gas in Latvia?
**Kalvītis:** We believe natural gas continues to play a vital role in Latvia’s energy mix. We remain committed to providing reliable, affordable energy, while simultaneously championing innovation and sustainability within the sector.
**Archyde:** Thank you for sharing your insightful perspective on the Latvian natural gas market, Mr. Kalvītis.
**Do you anticipate that the Latvian government will need to further intervene in the energy market to ensure affordability and stability for consumers, or will market forces ultimately prevail? Share your thoughts in the comments below.**
## Latvian Gas Market: Navigating Change with Aigar Kalvītis
**Archyde:** Thank you for joining us today, Mr.Kalvītis. The Latvian natural gas market has undeniably been in flux since the beginning of the war in Ukraine. Could you offer our readers your perspective on the current state of the market?
**Kalvītis:** You’re very welcome. It’s certainly been a time of significant change. While thankfully, we’ve seen prices stabilize and supplies remain steady, the war’s impact on consumption patterns is ongoing. Market conditions are, thankfully, improving compared to the past two years, but uncertainties remain.
**Archyde:** Can you elaborate on these consumption pattern changes you’ve observed?
**Kalvītis:** absolutely. While natural gas prices have dipped significantly as their peak in 2022, reaching lows not seen since June 2021 in March 2024, we’ve seen a corresponding shift in consumption habits. While Latvia has seen a 13.6% increase in natural gas consumption during the first ten months of 2024 compared to 2023,it hasn’t returned to pre-war levels. This trend mirrors what we’re seeing across Europe as businesses and consumers adapt to the new realities of the energy landscape.
**Archyde:** How is Latvijas gāze adapting to these changing dynamics?
**Kalvītis:** Adaptability is key in this habitat. Our years of experience and deep knowledge of the Latvian and European natural gas market are invaluable assets. we’re also committed to being proactive in our operations, constantly adjusting to changing market conditions.Maintaining high service quality remains our top priority, even amidst intensified competition. We’ve managed to retain a majority share of our household customer base following the full liberalization of the household market in May 2023.
**Archyde:** Looking ahead to 2025, what are some of the key challenges and opportunities you see for latvijas gāze and the Latvian natural gas market?
**Kalvītis:** 2025 will undoubtedly be a challenging year. We anticipate continued volatility in the energy market. Though,we are committed to leveraging innovation and digitization to enhance service accessibility and offer more flexible and lasting solutions to our customers. This will be critical for navigating the evolving energy landscape effectively.
**Archyde:** what message woudl you like to convey to our readers about the future of the Latvian natural gas market?
**Kalvītis:** The Latvian natural gas market is dynamic and constantly evolving. While challenges undoubtedly exist, I remain optimistic about the future. Through innovation, adaptability, and a commitment to customer service, latvijas gāze is well-positioned to navigate this complex landscape and continue to play a vital role in powering Latvia’s future.
**Thank you for your time and insights, Mr. Kalvītis.**
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