ENTSOG GRIP BEMIP 2014-2023 / Main Report

KARKSI GMS

The project promoter of Karksi GMS is AS EG Võrguteenus, the Estonian TSO. The aim of reconstruction of Karksi GMS is to allow to meter bi-directional gas flows at the Estonian-Latvian interconnection. In this cluster it is also planned to construct a CS. The construction of the CS is conditional to the construction of Balticconnector because there is no possibility and need to transmit gas through the Estonian grid to Latvia. To increase the maxi- mum capacity of gas transmitted from the Balticconnector to Latvian grid and vice versa and providing the Finnish gas market with better access to the Inčukalns UGS the CS has to be constructed.

MODERNISATION AND EXPANSION OF INČUKALNS UGS

Since 1968 Inčukalns UGS has been used as a natural gas source for the Baltic countries and the north-western part of Russia in winter. Gas into the storage is injected in summer and in winter natural gas customers in Latvia are receiving gas only from the storage. Also, Estonia mainly is supplied from the storage in winter and for Lithuania gas from the storage is used in case of necessity. In 2013 the project of modernization and expansion of Inčukalns UGS was included into the list of PCIs. Capacity of Inčukalns UGS is 4.45bcm, of which 2.3bcm is active or working natural gas. Maximum gas injection capacity of Inčukalns UGS is 18mcm/ day, and maximum working pressure – 105 bars. On its turn, maximal gas extraction capacity currently reaches 30mcm/ day. However, to use effectively Inčukalns storage for the needs of the common gas supply system of the East-Baltic region, maximum daily extraction capacity should be increased up to 35mcm. Specialists of AS Latvijas Gāze in cooperation with experts from Gazprom VNIIGAZ have developed technical justification of the planned activities and estimated capital costs. Total required investment amount is estimated 376.5million EUR . The main tasks of the project are: \\ technical upgrade and increase of gas extraction capacity up to 35mcm/ day; \\ increase of volume of working gas from 2,300mcm to 2,835mcm. In the first two stages (until 2020) modernization of gas collection points, recon- struction of gas compressor units and installation of a new gas compressor unit, as well as upgrade of 90 wells is envisaged. As a result of these measures the daily withdrawal volume of 35mcm per day would be reached. Total required investment for the first two stages is 135million EUR . Within next 5 years (Stage 3) it is envisaged to increase the active volume of gas up to 2,835mcm, which requires addition estimated financial investment in the amount of 241.5million EUR , including costs of cushion gas. In order to receive decision on the Cross Border Cost Allocation, AS Latvijas Gāze as the project promoter has submitted this project to the National Regulatory Authorities of Latvia, Lithuania, Estonia and Finland. The project of modernization and expansion of Inčukalns UGS is essential for efficient operation of the East-Baltic joint gas system, and its implementation togeth- er with other projects of the region (Intra-Baltic Connections, GIPL, Balticconnector and LNG terminal in the Gulf of Finland) will ensure increased gas supply security to consumers by diversifying gas supply sources and routes, as well as integrating gas networks of the Baltic countries and Finland to the common EU gas grid.

Baltic Energy Market Interconnection Plan GRIP 2014–2023 | 69