RIGA, March 5 (Xinhua) -- Latvia's state-owned power transmission system operator Augstspriehuma Tikls (AST) paid nearly 57.4 million euros (70.6 million U.S. dollars) for a 34.36 percent stake in Conexus Baltic Grid (Conexus), media reported Monday.
The gas transmission and storage company last year was spun off from Latvijas Gaze natural gas utility.
AST CEO Varis Boks said that the transmission system operator took a loan from the Latvian treasury to pay for the purchase.
He also said that the acquisition of Conexus shares was an economically advantageous deal and that it would have no effect on power transmission tariffs.
The Latvian government is buying up Conexus shares in order to create a regional natural gas market and ensure the Latvian energy market's further integration in the European Union, as well as to improve the security and competitiveness of energy supplies, Boks said.
Latvia, which opened up its gas market to free competition in April 2017, had to split up its gas monopoly Latvijas Gaze to comply with EU laws. Latvijas Gaze continues to sell natural gas, but its shareholders -- Gazprom, Itera Latvija and Uniper -- were expected to sell off their shares in Conexus Baltic Grid by Dec. 31, 2017.
