Goal and Strategy
The key medium-term (2019-2023) objectives of Conexus are related to three areas: market development, infrastructure provision and development of operations. The strategic objectives have been set in line with the Conexus values, the company vision and the Conexus mission – promoting sustainable operation of energy market in the region, ensuring reliable operation of natural gas transmission and storage system.
The strategic objectives defined in the Conexus strategic development plan for 2019-2023 are as follows:
- Development of the region’s natural gas market to ensure sustainable operation of Inčukalns UGS in the market conditions;
- Providing infrastructure that is safe, accessible and adequate for the market.
- Implementing sustainable management of internal and external resource capacity.
Alongside strategic objectives, Conexus has defined three development guidelines closely related to all planned medium-term activities. These development guidelines complement the strategic objectives and contribute to their implementation. The defined guidelines are as follows:
Operations of Conexus will be focused on technological advancements, improvement, decentralised management of assets, staff and finances, as well as introduction of effective resource management model.
Conexus - an energy company
The vision of Conexus is to become the most reliable source of energy in the region, as a result of which Conexus is planning to introduce services not only to the natural gas users, but also to electricity users.
Cooperation with other TSOs in the region
In the medium term, Conexus intends to promote cooperation with other transmission system operators in the region by coordinating routine cooperation and implementing a periodic comparative analysis system with other TSOs in the region
“Development of the region’s natural gas market to ensure sustainable operation of Inčukalns UGS in the market conditions”
The Baltic States together with Finland are working on establishment of a united natural gas market, which might become in the future the first such a united market region in the EU. A united natural gas market will promote market liquidity, will lessen the dependency of the market on Russian natural gas supplies, and will open new business possibilities both for transmission system’s operators, as well as natural gas traders. In order to establish a unified natural gas market, it is necessary to harmonize the transmission system’s usage terms and conditions and the balancing measures among the member countries.
In the current market conditions when the regulative framework is changing and unclear and it is planned to establish a united regional market, it is important to pay attention what is happening in the natural gas market, note the activities related to market development, as well as stimulate cooperation with involved parties.
Conexus forecasts that establishment of a united market will positively affect the potential of Inčukalns UGS, therefore one of the main targets in a united market situation is to ensure sustainable operation of Inčukalns UGS. In order to avoid situation when insufficient amount of active natural gas is injected in Inčukalns UGS and the operation of Inčukalns UGS is disturbed, Conexus also in the future is planning to attract new users of the storage by informing the market players of Finland and other neighbouring countries about possible services and options offered by Inčukalns UGS.
One of the major Conexus advantages is the fact that Conexus is a united natural gas transmission and storage operator and that is able to grant higher flexibility and more advantageous solutions to its users. In order to ensure the requirements of the users, the possibilities of Inčukalns UGS will be evaluated in middle term and the role of the storage will be assessed in guaranteeing the electricity generating capacities. It is forecasted that in the future Inčukalns UGS might have a material role not only as a seasonal storage and a national and regional supply safety solution, but also as a source of local gas supply flexibility, which helps to ensure the necessary support for guaranteeing generating capacities, especially in the forthcoming electricity market conditions after desynchronization.
“Providing infrastructure that is safe, accessible and adequate for the market”
Provision of safe infrastructure has always been the basic target of transmission and storage segments. Also further on it is of major significance to provide infrastructure that is safe, accessible and adequate for the market. For Conexus, similarly as it is for the operators of neighbouring transmission systems, one of the chief priorities is to implement projects for European common interests. In medium term, it is planned to enforce the Latvian-Lithuanian and Latvian-Estonian interconnection capacity enhancement projects, as well as Inčukalns UGS capacity enhancement project.
Conexus in medium term is planning to continue technical modernization of the existing infrastructure, including renovation of the existing infrastructure. Priority role for ensuring uninterrupted functioning of the system will be devoted to underground pipeline internal diagnostics and timely aversion of defects found as a result of such diagnostics.
Historically insufficient investments were made into implementation of digital solutions in transmission and storage systems. In order to timely identify and evaluate the system operation in the future, it is planned to develop a technical management policy, as well as implement a centralized asset management system. Upon implementation of an asset management system, it will be possible to ensure complete control of technical operation process and parameters, as well as increase the equipment expectancy and reduce overhauling costs.
“Implementing sustainable management of internal and external resource capacity”
According to market development tendencies, it is important to improve the company’s operation and satisfy not only the needs of existing and potential customers, but also promote employee growth and strengthen internal resources management.
In medium term, one of Conexus main targets is to implement and ensure sustainable internal resources operational management by ensuring development of human resources and competencies, as well as a reasonable and sustainable investment programme and attract investments to system operation, modernization and renewal. As a result of strengthening internal resources management, it will be possible to improve efficiency of internal processes and optimize the operations.
Given the fact that historically insufficient investments were made into introduction of digital solutions in transmission and storage systems, Conexus is oriented to modernization and upgrading of technologies. In medium term, it is planned to implement a centralized human resources, asset management and financial management system. Implementation and renovation of a centralized information technology system will promote effective resource management, as well as avert the possible safety related risks.
- Human resources. One of the major Conexus values is loyal and professional employees. In order to ensure growth and improvement of employees, Conexus is planning to organize staff training according to the necessary competencies. Additionally, Conexus is planning to develop a staff competency management plan, by means of which it will be possible to identify the strengths of employees and specify the areas for each employee where the training is necessary.
- Internal resources management. For provision of Conexus operations, it is material to ensure effective internal resources management. In order to realize this, in medium term Conexus is planning to work out management and supervision processes policies, as well as implement a centralized management system. In addition, Conexus together with other transmission system’s operators is planning to establish a united comparative analysis system thus ensuring more effective information flow and synchronization of activities.
- Financial resources management. In medium term, Conexus is planning to ensure sustainable investments attraction, maintenance of optimal cost base, as well as sustainable dividend policy.
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