Latvia’s natural gas transmission and storage operator Conexus Baltic Grid (Conexus) will invest EUR 88 mln in the upgrade of Incukalns underground natural gas storage facility.
The EUR 88 mln investment project will promote improvement of natural gas supply security, increase the capacity of the storage facility and promote integration in international energy market.
Preparations for the project were started already in 2019, and the large upgrade works should be completed by 2025.
Conexus board chairwoman Zane Kotane noted that Incukalns is very important for the region’s natural gas infrastructure because it is the only operating natural gas storage in the Baltic states, ensuring stability of the regional natural gas supplies.
“This is why upgrade of the natural gas storage facility will bring benefit in many aspects. First, the out-dated equipment of Incukalns natural gas storage utility will be replaced with new and modern technologies coming in that will increase capacity and safety of the storage. Second, this project is planned in close connection with the Baltic and Scandinavian markets ad their developments. As market integration is increasing, the role of the storage facility is also growing,” said Kotane.
Also, the upgrade will reduce greenhouse gas emissions and fuel gas consumption.
Co-funding of 50% has been received from the EU Connecting Europe Facility (CEF) instrument program, which is one of the largest European projects implemented in Latvia.
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%), Gazprom (34.1%) and Marguerite Gas I (29.06%).