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.