European co-financing granted to the development project of Inčukalns Underground Gas Storage of 88 Mio.

The European Commission has approved the granting of co-financing in amount of 50% to the development project of the unified natural gas transmission and storage operator JSC "Conexus Baltic Grid” which anticipates to improve significantly the technical infrastructure of Inčukalns Underground Gas Storage (Inčukalns UGS) and operational safety of equipment. Total investments of the project are 88 millions that are invested in the Storage to 2025.

In general, during six years investments are going to be channelled to three directions of storage modernization - modernization of surface infrastructure, repair of gas bores, modernization of the existing gas pumping equipment and purchase of new compressor the installation whereof starts one of the largest Inčukalns UGS infrastructure development projects of the last years.   In general, its aim is to extend the operation of storage so that Inčukalns UGS can maintain its functionality after the increase of pressure in Baltic transmission system. The main benefit from implementing the project is the ability to reduce the dependence of natural gas removal capacity from the volume of gas reserves at Inčukalns UGS.

Zane Kotāne, Chairwoman of the Board of JSC "Conexus Baltic Grid” informs: "By means of the investments we can replace the outdated systems that not always corresponds to current market needs. So I'm glad with the decision of European Commission that allows raising the positions of Inčukalns storage as a modern operator that is critically important for the infrastructure of natural gas system in the Baltic and whole Scandinavian Region." 

It's foreseen that the needed financing is attracted via investment banks.