: Gazprom mulling selling stake in Estonian gas supplier Estonian Eesti Gaas

19:03 May. 7, 2016

Gazprom mulling selling stake in Estonian gas supplier Estonian Eesti Gaas

The Gazprom stand at the 16th Internationla Exhibition 'Neftegaz-2016'. (Getty Images)

Gazprom delivered 532 million cubic meters of gas to Estonia last year

The Board of Directors of the Russian gas monopoly Gazprom on May 11 consider termination of participation in Eesti Gaas, which is engaged in the purchase, transport, distribution, and sale of gas in Estonia, according to Gazprom, Prime news agency reported.

Eesti Gaas buys gas from its second largest shareholder Gazprom and resells it in Estonia. In 2015, Gazprom delivered 532 million cubic meters of gas to Estonia.

The meeting of the board of directors of Gazrpom has on its agenda the issue "on termination of PJSC Gazprom's participation in AS Eesti Gaas," according to Prime.

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Current shareholders of Eesti Gaas are Finnish Fortum (51,38%), the Russian Gazprom (37.03%), Latvia Itera Latvija (10,02%), and minority shareholders (1.57%).

Earlier it was reported that the Finnish energy concern Fortum agreed to sell its stake (51.4%) in the company Eesti Gaas. The buyer will be Trilini Energy, of which the majority owner is the Estonian investment company Infortar. Fortum expects to complete the transaction in the first half of 2016. Fortum announced its intention to sell gas assets in Estonia on July 1, 2014.

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In January 2014, pursuant to the law of the Republic of Estonia On Natural Gas, a gas transmission system operator - AS EG Vorguteenus – was divided from AS Eesti Gaas. 100% of shares of the gas transmission operator were transferred to AS Vorguteenus Valdus. Gazprom has received 37.03% of shares in AS Vorguteenus Valdus, retaining 37.03% of AS Eesti Gaas. AS EG Vorguteenus is the owner of the gas transportation system of Estonia and performs the functions of the system's operator.

Reporting by UNIAN.

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