Elenger says gas supplies for next heating season are fully secured
Energy company Elenger has secured all the natural gas volumes needed for the next heating season, though prices remain sensitive to tensions around the Strait of Hormuz.
Gints Brakovskis, Elenger's executive director in Latvia, told the LETA news agency that the energy company has secured the full volume of natural gas needed for the upcoming heating season. Most of the supply was already delivered in spring and summer via ports in Finland and Lithuania, and contracts have now been signed for the remaining volumes, meaning customer supplies are fully guaranteed.
This year Elenger plans to deliver 11 liquefied natural gas (LNG) cargoes to the Finland and Baltic region — seven to the port of Inkoo in Finland and four to the Klaipėda LNG terminal in Lithuania. The final three cargoes from the United States to Inkoo are scheduled for November and December. Additional gas reserves are being stored at the Inčukalns underground gas storage facility in Latvia as well as underground storage sites in Poland, to ensure uninterrupted supply throughout the heating season.
Prices tied to geopolitics
Brakovskis said future gas price trends will largely depend on the course of the conflict between the United States and Iran, particularly developments around the Strait of Hormuz, where talks have currently stalled and shipping traffic remains disrupted. This has pushed gas prices upward — on the Netherlands' TTF exchange, the main European gas price benchmark, the front-month futures price currently stands at around 60 euros per megawatt-hour. Elenger forecasts the price will remain volatile, mostly ranging between 50 and 70 euros per MWh.
If a lasting ceasefire and broader agreement were reached in the third quarter, easing geopolitical risks and normalizing LNG deliveries could significantly lower prices. Conversely, if the conflict escalates and shipping through the Strait of Hormuz stays minimal through the end of the year, European gas storage levels could be notably lower heading into winter, setting the stage for a sharper rise in TTF prices.
The company noted that its Latvian subsidiary of Estonia's Elenger Grupp posted revenue of 67.514 million euros last year, up 0.7% from the year before, while profit fell 2.8 times to 697,441 euros. Elenger was registered in Latvia in 2017 with share capital of 2,800 euros and is owned by Estonia's Elenger Grupp. Its main supply partners are Vitol, Total, and Norway's Equinor.
