Announcement on gas procurement and the impact of the current situation
March 4, 2022
Assessing the possible risks related to the Russia's invasion of Ukraine and in accordance with the task given by the government on 24 February this year to replenish gas reserves for national security purposes, Latvenergo AS has swiftly procured approximately 2 terawatt hours (TWh) of gas for the security of supply of production of the combined heat and power plants of Latvenergo AS. The concluded agreements envisage liquefied natural gas supply to Klaipeda Terminal and injection of gas into Inčukalns underground gas storage in April and May. Natural gas will be supplied from Norway, the USA and Qatar. The purchased amount of gas will ensure the production of electricity and heat at the planned production regime of the combined heat and power plants of Latvenergo AS in 2022, at the same time envisaging gas reserves in the event of a possible energy crisis.
We would like to inform you that Latvenergo Group has not entered into any significant agreements with companies in Russia, Belarus or Ukraine, which could have a material negative impact on the Group's operations in the current situation. An additional impact on the Latvenergo Group's financial results could be caused by the general deterioration of the economic situation.