Baltic Energy Market Interconnection Plan GRIP 2017

4.5.2 INČUKALNS UNDERGROUND GAS STORAGE

Total volume of Inčukalns UGS is 4.4bcm, including working gas volume of 2.3bcm.

100 2,5 mcm³

Natural gas supply from Inčukalns UGS per country (million m³)

0 2,281

2,142

2,058

2,023

1,856

2,00

80

643

360

407 0 1,652

500

626

386

464

1,50

60

500

411

432

407

293

1,00

40

1,301

1,138

1,112

1,032

1,025

50

20

951

0

2015

2010

2011

2012

2013

2014

Estonia

Russia

Lithuania

Latvia

Figure 4.12: Natural gas supply from Inčukalns UGS per country (million m³)

Since Inčukalns UGS commenced operation back in 1968, overall modernisation were required in order to meet the modern gas storage standards. Before work com- menced, a few technical studies were carried out with the aim of deciding on the necessary modernisation and replacement measures. For example, the German company “UGS Mittenwalde GmbH” performed a safety analysis for Inčukalns UGS and a few technical studies were performed by “Gazpromenergodiagnistica”. In December 2011, scientific institute VNIIGAZ completed extensive investigation of the equipment condition at the Inčukalns UGS site and, based on the results, created modernisation plans for the technical equipment and specified improve- ments for operational safety at Inčukalns Underground Gas Storage. Based on these studies, a modernisation and safety improvement plan was developed and is being implemented on a step-by-step basis. Within the framework of the European Ener- gy Program for recovery modernisation of 17 wells in Inčukalns UGS were financed from European EERP fund. The enhancement project for Inčukalns UGS is includ- ed in the 1 st and 2  nd list of European Projects of Common Interest. Taking into consideration the changing market situation in the Eastern Baltic region, JSC “Conexus Baltic Grid” is commencing a feasibility study on to increase the flexibili- ty of storage and thus use it as a strategic storage for security of supply, which is co-financed by CEF fund. Taking into consideration the latest developments in the region, including, decrease of gas consumption, as well as uncertainty regarding the volumes of gas kept in storage by JSC “Gazprom” in the future, which has negative impact on Inčukalns UGS commercial performance, it is important to realise that without successful operation of the storage it is not possible to realise an efficient and safe supply of gas for the entire region. Since th East-Baltic region has no natural gas production facility, Inčukalns UGS is the only absolutely reliable source of gas there. Moreover, such projects as GIPL and Balticconnector will benefit from the successful implementation of the Inčukalns UGS enhancement project.

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BEMIP Gas Regional Investment Plan 2017