Agreement Signed on the Feasibility Study of Enhancement of Latvia-Lithuania Interconnection Project

Lithuanian natural gas transmission system operator Amber Grid and Latvian natural gas transmission system operator Conexus Baltic Grid have signed a trilateral agreement with the Innovation and Networks Executive Agency (INEA) on financing the feasibility study of the enhancement of capacity of the gas transmission pipeline interconnection between Latvia and Lithuania from the EU Connecting Europe Facility (CEF). The EU support earmarked for the study is up to EUR 175,000.

The feasibility study is expected to identify the throughput capacity of the Latvian-Lithuanian gas interconnection required to meet the demand of the regional gas market and ensure gas supply security after the effective launch of two other regional gas infrastructure facilities, i.e. the gas pipeline interconnectors between Finland and Estonia (Balticconnector) and between Poland and Lithuania (GIPL) and the most efficient solution for implementation of this capacity.

The study is also expected to deliver preliminary technical parameters of the required infrastructure facilities, to make a cost-benefit analysis of the project and to analyse other data related to the project. With the completion of the feasibility study in the third quarter of 2018 terms and conditions of the project for the enhancement of the capacity of the Latvian-Lithuanian gas pipeline interconnection will be identified. The feasibility study is conducted by the independent expert company Ernst&Young that was selected through international tender.

The project aims to enhance the capacity of the gas system interconnection between Latvia and Lithuania, ensure the security and reliability of natural gas supplies, facilitate a more efficient use of the infrastructure facilities and make for a better integration of the Baltic gas markets. It will also improve conditions for the use of the Latvian Inčukalns Underground Gas Storage Facility.

The Project of Enhancement of Latvia-Lithuania Interconnection is included into the List of Projects of Common Interest (PCI) as approved by the European Commission.

        





About the operators:

The natural gas transmission system operators of the Baltic countries ensure the reliable and secure transmission of natural gas to the users of the system through high pressure pipes, and the use, maintenance and development of the natural gas infrastructure. 

A controlling shareholding in AB Amber Grid is owned by the managing company UAB EPSO-G, which is wholly owned by the Ministry of Energy of the Republic of Lithuania.

Conexus Baltic Grid AS is the Latvian gas transmission system operator, which was set up by separating trunk pipelines and the Inčukalns underground gas storage facility from Latvijas Gaze in December 2016. Augstsprieguma Tīkls controls 68.46%, Marguerite Gas 29.06%, and small shareholders 2.49% of Conexus Baltic Grid’s shares.
 
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