Amber Grid: record growth in gas transmission to the Baltics and increased gas consumption in Lithuania

In 2020, the Lithuanian gas transmission system operator Amber Grid transported 33 terawatt hours (TWh) of natural gas to consumers in Lithuania, Latvia, Estonia and Finland, apart from gas transmission to Kaliningrad Oblast. Even though winter was warmer last year, it is a 12% increase compared to 2019, when 29.5 TWh of natural gas was transported for the needs of this region. A total of 58 TWh of gas was transported during the year through the Lithuanian gas transmission system operated by Amber Grid.

'The excellent results of gas transmission could be mainly attributed to extremely favourable gas prices and an especially competitive level of LNG prices, significant gas transportation to the Baltic States and Finland, and increased gas consumption in Lithuania due to higher electricity production. This encouraged market participants to use the developed Lithuanian gas infrastructure and flexible services at a gas transmission price which was 16% lower than in 2019. Last year, we secured the system's capacities as well as capacities to transmit large amounts of gas. We expect that these positive market trends will continue in 2021. We are preparing for this by further strengthening the network, expanding cross-border connections, which will further increase capacities, investing in remote system management and developing competencies to operate the system in conditions of uncertainty,' says Nemunas Biknius, CEO of Amber Grid.

Gas transit to Latvia through the Lithuanian gas transmission infrastructure for the needs of the Baltic States and Finland and for gas storage at the Inčukalns gas storage facility in Latvia increased to 8 TWh per year. This is a 33% growth compared with 2019 and the largest amount of gas ever transmitted to Latvia. This growth could be associated with the gas transmission link between Estonia and Finland, which was launched from the beginning of 2020. Lithuania is expected to play an even more significant role in the common gas market of the region at the end of 2021, when the construction of a gas pipeline connection with Poland will be completed, and at the beginning of 2022 after the introduction of a new, alternative gas transport route.

Thanks to the competitiveness of liquefied natural gas in the market, the volume of gas transported through the Klaipėda LNG terminal was significant. In 2020, as in 2019, gas imports through the LNG terminal accounted for 65% (21.9 TWh) of the total amount of gas supplied to the EU gas market through Lithuania. In 2018, this figure was 35%.

During the year, Lithuania saw a growth in gas consumption - over the last 12 months the country consumed 25.1 TWh of gas, or 7% more than in 2019, when a 5% growth in gas consumption was recorded. As gas was used again as fuel in the Lithuanian electricity generation sector due to favourable prices on the world markets, in 2020 the country consumed the largest amount of gas in the last five years.

In 2020, gas transportation through Lithuania to Kaliningrad Oblast amounted to 24.9 TWh and was 4.2% lower than in 2019, when 26 TWh of natural gas was transmitted to Kaliningrad through Lithuania.

Gas is supplied to Lithuania and the neighbouring Baltic States and Finland through the Klaipėda LNG terminal and through gas pipelines from Russia via Belarus and Latvia. During the cold season gas is also received from Latvia - from the Inčukalns underground gas storage facility. The built gas pipeline connection between Poland and Lithuania will ensure gas supply from Western Europe and other sources through Poland to Lithuania, other Baltic countries and Finland. This connection will operate in both directions, and under favourable market conditions, gas from the Klaipėda LNG terminal could be transported to the Polish gas market or other European countries.