Connecting the Baltic States to Europe’s Gas Market
More than two decades after the end of the Soviet occupation, and eight years after they joined NATO and the European Union, the Baltic republics remain disintegrated from the rest of Europe in one crucial way: their natural gas infrastructure isolates them into “energy islands.” Yet, for the first time in their histories, Estonia, Latvia, and Lithuania now have a chance to secure their energy independence by connecting their natural gas networks with those of their European allies and evolving them into market-based trading systems. This will require the Baltic republics to work with their EU partners to develop the physical and regulatory infrastructure necessary for liquid trading hubs and spot-market pricing of natural gas to emerge in the region. By achieving these objectives, these three small countries on the EU’s periphery will help the EU achieve two key strategic goals: to establish a single European energy market; and to complete the full integration of the EU’s easternmost member states into a Europe that is whole and free.
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