Latvia Oil and Gas Market Overview
Latvia’s oil and gas market is characterized by its strategic reliance on imports, its geographic role as a regional energy transit point, and its accelerating energy diversification efforts. The country does not have significant domestic oil or natural gas production and relies primarily on imports to meet its energy needs. Latvia’s consumption of natural gas has historically been shaped by Russian pipeline supplies, but geopolitical developments since 2022 have led to a rapid pivot toward alternative sources. The nation is a part of the European Union’s internal energy market and benefits from integrated regional infrastructure, particularly through its participation in the Baltic Energy Market Interconnection Plan (BEMIP). As part of its long-term energy strategy, Latvia is working to reduce dependence on fossil fuels, increase storage and transmission capacity, and support the development of cleaner energy alternatives, including biomethane and hydrogen. These goals align with broader EU decarbonization objectives and Latvia’s national energy security agenda.
Latvia’s upstream oil and gas activity is minimal, with no commercial production of crude oil or natural gas. Instead, the country’s role in the regional energy market is heavily focused on midstream infrastructure. A central asset is the Inčukalns Underground Gas Storage facility, one of the largest in Northern Europe, which plays a critical role in ensuring supply flexibility and security for the Baltic states. Latvia is also connected to the regional gas grid via the Latvia–Lithuania interconnector and the Estonia–Latvia pipeline, both of which facilitate cross-border gas flows. On the downstream side, Latvia imports refined petroleum products through its port infrastructure, particularly from Klaipėda and Ventspils. Retail distribution is managed by a mix of local and international fuel companies. As Latvia transitions its energy mix, investments in LNG infrastructure, renewable gas, and grid modernization are expected to reshape its midstream and downstream landscape. The focus is now on enhancing resilience, decarbonizing supply chains, and reducing exposure to geopolitical energy risks.
Latvia Oil and Gas Market Latest Developments
In early 2024, Conexus Baltic Grid launched a five-year gas storage capacity product at the Inčukalns Underground Gas Storage facility to promote long-term energy security and attract commercial interest from across the Baltic region.In November 2024, Conexus advanced preparatory work on the proposed Skulte LNG terminal project, including pipeline alignment from the Skulte coast to the Inčukalns storage site, moving closer to a final investment decision.
In December 2024, a new LNG pier at Pakrineeme was inaugurated to support floating storage and regasification units (FSRUs), offering Latvia greater flexibility in LNG imports.
In October 2024, the Balticconnector pipeline linking Finland and Estonia was restored to full capacity after maintenance, reinforcing Latvia’s interconnection strength in the regional gas market.
In early 2025, Latvia completed key compressor station upgrades on its gas transmission network, reducing operational emissions by 80% and improving energy efficiency.
Key Takeaways:
The introduction of long-term storage products at Inčukalns reflects Latvia’s effort to stabilize regional gas flows and encourage long-duration commitments in a volatile market.
Initial uptake of the five-year storage product was cautious due to pricing volatility, but it represents a strategic move toward deeper market integration.
Progress on the Skulte LNG terminal demonstrates Latvia’s intent to establish its own gas import point, reducing dependence on Lithuanian or Finnish terminals.
The planned Skulte–Inčukalns pipeline would connect offshore LNG reception with large-scale seasonal storage, enhancing national supply resilience.
The new LNG pier at Pakrineeme supports flexible deployment of FSRUs, enabling rapid import response in peak demand or supply disruption scenarios.
By enabling offshore regasification, Latvia avoids large-scale onshore LNG infrastructure costs while leveraging existing storage facilities.
Restoration of the Balticconnector pipeline has strengthened Latvia’s regional energy connectivity, ensuring reliable gas flow between Finland and the Baltic states.
Latvia’s compressor station upgrades signal a broader commitment to environmental performance and modernized transmission infrastructure.
All developments align with Latvia’s objective of fully decoupling from historical Russian gas reliance and diversifying supply sources.
In 2024 and 2025, Latvia’s oil and gas strategy emphasizes energy security, regional integration, and clean technology adaptation, in line with EU energy transition goals.
Latvia Oil and Gas Market Report Scope
The "Latvia Oil and Gas Strategic Analysis and Outlook to 2032" is an all-encompassing report that delivers a full-spectrum evaluation of the nation’s oil and gas value chain—from exploration and production fields, refinery and LNG plant operations, to midstream pipelines and storage infrastructure in Latvia. Leveraging robust methodologies and proprietary databases, the study provides detailed asset-level data, historic and forecasted supply-demand trends (2015–2032), and a clear understanding of how recent developments, government policies, and market dynamics shape the sector. The Latvia Oil and Gas report equips industry stakeholders with actionable insights for investment, benchmarking, and strategic planning by profiling operational assets, new projects, and the competitive landscape across upstream, midstream, and downstream segments.
Comprehensive market analytics are complemented by SWOT and investment opportunity analysis, highlighting growth drivers, operational risks, sector-specific challenges, and capital requirements. The study evaluates key companies’ strategies, performance, and market positions, providing an integrated view of where opportunities and bottlenecks exist. The scope extends to Latvia field-wise production, refinery-wise capacity, LNG terminal operations (including liquefaction and regasification units), and product flows through pipelines and storage. The research not only answers core market questions but also uncovers the evolving dynamics that will influence the future trajectory of Latvia country’s oil and gas industry.
- Latvia Asset-by-asset data covers all existing and upcoming oil and gas fields, refineries, LNG terminals, pipelines, and storage facilities, providing a granular view of national infrastructure.
- Historic and projected supply-demand analysis for crude oil, natural gas, and key refined products (gasoline, diesel, LPG, fuel oil, etc.) from 2015 to 2032.
- Recent developments, regulatory changes, and major project announcements are analyzed for their impact on market fundamentals and investment climate.
- Segmented insights into upstream (exploration and production), midstream (pipelines, LNG, storage), and downstream (refining, distribution) operations.
- Comprehensive overview of LNG sector including liquefaction and regasification terminals, contracted versus available capacity, and future outlook.
- Latvia Oil and Gas Industry SWOT analysis and sector-wise benchmarking to evaluate industry strengths, challenges, opportunities, and potential risks.
- Latvia Investment analysis detailing sector growth potential, required capital for new projects, and feasibility of ongoing and planned developments.
- Competitive landscape profiling of leading companies, with business strategies, operational performance, and market shares.
- Infrastructure benchmarking by market concentration in pipelines, refining, LNG, and storage segments, including capacity and utilization rates.
- Answers to key market questions, including evolving Latvia supply-demand dynamics, project status, leading market participants, and the future outlook for capacity, trade, and investment.
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FAQ's
The Latvia Oil and Gas report provides comprehensive intelligence from upstream to downstream—covering exploration blocks, field-level production, refinery operations, LNG terminals, and supply-demand analytics. It empowers executives and investors with actionable insights to assess risks, evaluate opportunities, and optimize Latvia market entry or expansion strategies.
Yes, the report presents detailed data and analysis for all relevant segments present in the country—whether upstream (exploration and production), midstream (LNG terminals, storage facilities, pipelines), or downstream (refineries). This sector-specific granularity ensures accurate benchmarking, planning, and forecasting tailored to the Latvia oil and gas infrastructure.
With detailed coverage of exploration opportunities, trade contracts, regulatory frameworks, and infrastructure projects, the Latvia oil and gas report serves as a critical tool for stakeholders formulating investment strategies, negotiating partnerships, or aligning with national energy policies.
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