Conexus will invest EUR 33.5 million in the modernisation of Inčukalns UGS this year

Continuing the modernisation of the Inčukalns Underground Gas Storage (UGS) within the framework of the European investment project of common interest, the unified operator of the natural gas transmission and storage system Conexus Baltic Grid (Conexus) will invest EUR 33.5 million this year in the improvement of the storage infrastructure.

This year's investments include Phase I of the construction of Gas collection point (GCP) 3, the reconstruction of 6 wells and the installation of a new gas pumping unit at the Gas Compressor Station 1.

"For several years now, the Inčukalns Underground Gas Storage Modernisation Project has been one of our key tasks, and this year is no exception. Although the project will be completed at the end of 2025, we have already modernised a large part of the storage’s facilities, making a significant contribution to the continuity and security of natural gas supply," says Uldis Bariss, Chairman of the Conexus Management Board.

U. Bariss adds that the storage modernization project has significantly increased the flexibility of the storage facility, allowing both injection and withdrawal throughout the year. However, the modernization project has a number of other benefits as well, incl. reducing environmental impact and fuel gas consumption per unit of natural gas injected.

Overall, the Inčukalns UGS modernization works will be implemented by the end of 2025 with a total investment of EUR 99.5 million, of which EUR 44 million is covered by the Connecting Europe Facility (CEF).

This project involves the upgrade of the above-ground infrastructure, including the rebuilding of the GCP 3, the reconstruction of the wells, the modernisation of the existing five gas pumping units and the installation of a new gas pumping unit, improving the security of natural gas supply, increasing the operational capacity of the storage facility and facilitating the integration in the international energy market.

The reconstruction of GCP 3 is currently underway and Phase I is expected to be commissioned in the middle of this year. Within the project, reconstruction of 29 out of 36 wells has already been completed, all five upgraded gas pumping units commissioned and preparations made for the installation of the new gas pumping unit at Inčukalns UGS Compressor Station 1.