Baltic, Energy, Gas, Gas Market , Latvia

International Internet Magazine. Baltic States news & analytics Wednesday, 19.06.2019, 10:57

Conexus to begin accepting applications for pumping of natural gas

BC, Riga, 02.01.2019.Print version
Conexus Baltic Grid (Conexus) natural gas transmission and storage operator will begin accepting applications for pumping of natural gas into Incukalns underground gas storage facility on January 15, not in May as in prior years, said Conexus board chairwoman Zane Kotane.

She said that 2019 will start with new natural gas storage tariffs which also bring changes in the pumping season plan.

"The adopted tariffs will promote development and security of the natural gas market and will promote entrance of the large and global market players in the market who will use Incukalns storage facility, thus strengthening its regional role. It had been difficult to do that earlier due to different bureaucratic obstacles," said Kotane.

In her words, timely preparation for the new season is also a matter of a stability and security in natural gas supplies.

Kotane explained that next season Incukalns will offer its customers to choose one of the services – bundled unit capacity product, market product, virtual counterflow product. Also a two-year cycle product has been developed.

Kotane also said that the adopted tariffs is one of the steps towards the necessary changes to improve operations of the Incukalns storage facility as the state strategic infrastructure object.

"We have launched and will continue discussions on the appropriate model for the gas storage facility. Presently natural gas merchants do not have the duty to use Incukalns storage facility for storing gas, and the facility is not able to cover all infrastructure costs related with its operations. Without introducing reforms, there might be risks to security and stability of natural gas supplies," said Kotane.

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%).

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