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Published: 5/31/2019. Updated: 5/31/2019

The Lithuanian, Latvian and Estonian national regulatory authorities on 30 May 2019 signed cross border cost allocation (CBCA) agreement

On 30th May 2019 National Commission for Energy Control and Prices approved the Lithuanian natural gas transmission system operator's (TSO) AB “Amber Grid” investment into the Project of Common Interest (PCI) No. 8.2.1 Enhancement of the Latvia-Lithuania Interconnection.

The project will remove the potential bottleneck in the Latvia-Lithuania Interconnection and help to increase market integration, security of supply and diversify natural gas supply.

The Lithuanian part of the project will cost 4,7 million euros. The total cost of the project including Latvian part will stand at 10,2 million euros.

On 30th May 2019 the Lithuanian and Latvian national regulatory authorities signed the cross-border cost allocation (CBCA) agreement and agreed that no compensation among beneficiary countries (Lithuania, Latvia, Estonia and Finland) is required. Based on this conclusion the efficiently incurred investment costs in Lithuania shall be allocated to Lithuania and costs in Latvia shall be allocated to Latvia.

The project promoters will have the opportunity to receive financial support from European Union to cover part of the project's costs.