MOSCOW, Dec 4 (LETA--INTERFAX) - Russian energy concern Gazprom on December 30 will oranize an auction of its 34.09911 percent stake in Latvian natural gas transmission and storage operator Conexus Baltic Grid (Conexus).

The starting price will be EUR 79 million, while the minimum price is set at EUR 70 million. The downward step will be EUR 1 million, and the upward step will be EUR 500,000.

Bids are accepted by December 26, but the auction will be held on December 30 on Gazprom's electronic trade platform, the company reported.

Conexus Baltic Grid, which has taken over natural gas storage and transmission functions from Latvijas Gaze, was established on December 22, 2016. Conexus is Latvia's natural gas transmission and storage operator managing the Underground Gas Storage facility in Incukalns and the gas transmission system connecting the Latvian gas market with Lithuania, Estonia and the northwestern region of Russia.

Conexus belongs to Augstsprieguma Tikls (34.36 percent), Gazprom (34.1 percent) and Marguerite Gas I (29.06 percent).

The Public Utilities Commission has certified Latvian natural gas transmission and storage operator Conexus Baltic Grid (Conexus) on two conditions that have to be fulfilled by the end of this year.

One of the conditions provides that supervision over Incukans underground natural gas storage facility as of January 1, 2020, should be conducted by a company that is not directly or indirectly linked with Russian Gazprom and related companies.

The second condition was included already in last year's decision and is still in force - by January 1, 2020, Conexus is required to make sure that Gazprom does not have ways to implement direct or indirect control over Conexus. Also, by January 1, 2020, Conexus has to prevent the risks of conflict of interest posed by Marguerite Gas I and Marguerite Gas II participation in both Conexus and Latvijas Gaze. Conexus will have to report every other month to the regulator on progress in these matters and the planned steps.

© Pakistan Press International, source Asianet-Pakistan