The modernization of the Inčukalns Underground Gas Storage has been completed, following an investment of €98.8 million
The unified gas transmission and storage system operator “Conexus Baltic Grid” AS (“Conexus”) has completed one of the most significant energy infrastructure development projects in Latvia in recent years – the modernization of the Inčukalns Underground Gas Storage (UGS).
Implemented over a seven-year period, the project involved total investments of €98.8 million in the storage facility’s infrastructure, significantly strengthening energy security in Latvia and the Baltic region. The modernization has enhanced the operational flexibility of the facility and ensured its alignment with evolving energy market conditions. Of the total investment, €44 million was co-financed by the Connecting Europe Facility (CEF).
The modernization programme, launched in 2018, was executed in phases, ensuring uninterrupted operation of the storage facility throughout extensive construction and technological upgrade works.
According to Uldis Bariss, Chairman of the Management Board of AS “Conexus Baltic Grid”, the project represents a strategically important investment in regional energy security: “This complex project has been implemented at a critical time, ensuring that Latvia’s energy infrastructure is resilient and responsive to market dynamics. The modernization has transformed the Inčukalns facility into a more flexible, efficient, and secure asset. It now serves as a key energy system buffer, capable of balancing market demand and ensuring supply even under high-demand conditions.”
At the project’s closing event, the Minister for Climate and Energy, Kaspars Melnis, emphasized the strategic importance of the Inčukalns UGS: “The Inčukalns Underground Gas Storage is a strategic asset for Latvia and a key component of regional energy resilience. Its importance is particularly evident in the current geopolitical context. At the same time, maintaining such infrastructure represents an ongoing responsibility to ensure it remains modern, secure, and prepared for future challenges.”
The modernization focused on three key operational areas of the storage facility while also improving its environmental performance. As part of the project, Gas Collection Point No. 3 was fully reconstructed, replacing outdated infrastructure with modern equipment and engineering solutions. The upgraded facility includes new filtration systems, interconnecting pipelines, and supporting infrastructure.
In addition, 36 storage wells were refurbished and equipped with upgraded safety, control, and operational systems, enhancing overall reliability and long-term performance.
A key element of the project was the modernization and expansion of compressor infrastructure. Five gas compression units were upgraded at the second station, and one new unit was installed at the first station, increasing both gas injection and withdrawal capacities. As a result, injection capacity has increased from approximately 17 million cubic metres per day to 21 million cubic metres per day, while withdrawal capacity has reached up to 12 million cubic metres per day.
The project also delivered measurable environmental benefits. Modernized compressor systems have reduced nitrogen oxide (NOx) emissions by up to 80% and decreased natural gas consumption by approximately 7% during operation, contributing to improved resource efficiency and reduced environmental impact.
Anca-Iulia Cîmpeanu, representative of the European Climate, Infrastructure and Environment Executive Agency (CINEA), highlighted the broader European significance of the project: “Energy security remains one of Europe’s key challenges, particularly in the current geopolitical environment. The Inčukalns storage facility has played a vital role in ensuring secure gas supply in the region and has significantly contributed to reducing dependence on Russian gas. The support provided through the Connecting Europe Facility has been instrumental in achieving these results.”
A closing event marking the completion of the modernization project was held at the Inčukalns UGS, attended by Minister for Climate and Energy Kaspars Melnis, Chairman of the Management Board of “Conexus Baltic Grid” Uldis Bariss, and CINEA representative Anca-Iulia Cîmpeanu.
