Operation of IPGK

June 20, 2024

How the injection volume is split in case of a congestion

In view of the congestion in the Inčukalns UGS injection, please refer to Part VIII of the Regulations Regarding the Use of Inčukalns UGS *, which governs the management of congestion management:

  • If the system operator detects physical congestion of capacity by 15:00 (Latvian time) on a gas day D-1:

During the injection of natural gas into the storage facility, the system operator shall, within the framework of congestion management, distribute the capacity of natural gas injection between system users for the highest priority bundled capacity product and two-year bundled capacity product within the scope of the available capacity and in proportion to the booked and unused capacity of the storage facility.

  • If the system operator detects physical congestion of capacity after 15:00 (Latvian time) on a gas day D-1:

During the injection of natural gas into the storage facility, the system operator shall, within the framework of congestion management and capacity available for the injection of natural gas for storage, distribute the capacity of natural gas injection between system users in the order of receipt of trade notifications and for the highest priority bundled capacity product and two-year bundled capacity product indicated in the trade notification.

* Regulations Regarding the Use of Inčukalns Underground Gas Storage Facility

March 31, 2022

  • Question - Is it possible to transfer capacity booked for the next storage cycle and how?
  • Answer - Capacity booked for the next cycle can be transferred manually by sending application (digitally signed) by each party to [email protected].

March 2, 2022

  • Question - How the injection congestion management will be done if congestion will happen in March and April 2022 (in case of nomination submitted earlier than 15:00 on the previous day)?
  • Answer - Currently congestion management works exactly same way as during injection season in summer.

November 17, 2021

Information about Inčukalns underground gas storage withdrawal capacity congestion management is HERE.

April 19, 2021

  • Question - What happens if less than 5% of stocks remain in the Incukalns gas storage by the end of current storage cycle and there no available capacity for the next storage cycle?
  • Answer - In situation when system user has inventory at end of 2020/2021 cycle within bundled capacity product:  if inventory is less or equal than 5% from available bundled capacity, inventory stays as 1-year bundled capacity product and new cycle tariff (excluding auction premium) is applied. Inventory above 5% will be converted to Stock transfer product and respective tariff will apply.

Same happens also to users who have not booked capacity for cycle 2021/2022.

In situation when system user has inventory at end of 2020/2021 cycle within two-year bundled capacity product booked in 2019: if inventory is less or equal than 5% from available bundled capacity, inventory stays as 1-year bundled capacity product and new cycle tariff (excluding auction premium) is applied. Inventory above 5% will be converted to Stock transfer product and respective tariff will apply.

In situation when system user has inventory at end of 2020/2021 cycle within two-year bundled capacity product booked in 2020, all this inventory stays as two-year bundled capacity product for 2nd year.

In situation when system user has inventory at end of 2020/2021 cycle within market product, all inventory will be converted to Stock transfer product and respective tariff will apply.

March 15. 2021

  • Question - Could you please clarify one thing for us in regards to paragraph 81.1 of “Rules of Use of the Inčukalns Underground Gas Storage Facility” https://capacity.conexus.lv/uploads/filedir/storage_regulation_eng.pdf

It says: 
81. At the end of the 2020/2021 storage cycle of the system user within the capacity product, the period of use of which expires, the existing stocks shall be transferred to the next storage cycle as follows: 
81.1. regarding the stocks at the end of the storage cycle not exceeding 5% of the total booked capacity within the bundled capacity product and the two-year bundled capacity product, the system user shall be deemed to have booked bundled capacity product for the next storage cycle in the relevant stock quantity to be settled with the system operator in accordance with the tariff for the relevant capacity product set for the next storage cycle;

So does it mean that 5% of expiring 2020/2021 1yBCP product (if our gas inventories remain unwithdrawn with given 1yBCP product) will be converted into 2021/2022 1yBCP product at the base tariff of 1,0226 EUR/MWh or will auction results somehow be taken into account?

  • Answer - Yes, but auction will not affect tariff.
  • Question - So does it mean that 5% of expiring 2019/2021 2yBCP product (if our gas inventories remain unwithdrawn with given 2yBCP product) will be converted into 2021/2023 2yBCP product at the base tariff of 1,0865*2= 2,1730 EUR/MWh or will auction results somehow be taken into account?
  • Answer - It will be converted into 2020/2021 1yBCP product at current tariff 1,0226 EUR / MWh, auction will not affect tariff.
  • Question - So does it mean that 5% of expiring 2019/2021 2yBCP product (if our gas inventories remain unwithdrawn with given 2yBCP product) will be converted into 2021/2023 2yBCP product at the base tariff of 1,0865*2= 2,1730 EUR/MWh or will auction results somehow be taken into account?
  •  Answer - It will be converted into 2020/2021 1yBCP product at current tariff 1,0226 EUR / MWh, auction will not affect tariff.

March 12, 2021

  • Question - How cost of 2 year bundled capacity product will be calculated?
  • Answer - (Amount x Tariff x 2) + (Amount x Premium) = Cost of 2YBCP in 2 years.

March 3, 2021

  • Question - There is a mistake in the following document Bundled capacity product Auction offer
  • Answer - This shall be corrected.
  • Question - Is Auction participant allowed to create extra rows in the Excel file after the row 22 if more than 4 bids are supposed to be submitted? 
  • Answer - Yes, you can create unlimited number of rows.
  • Question - Could you please confirm that Auction participant should indicate in this form bid for the premium on top of the base tariff confirmed by LV PUC?
  • Answer - Yes, Auction participant should indicate in this form bid for the premium on top of the base tariff confirmed by LV PUC.
  • Question - Are PUC tariffs for storage products confirmed for a 5-year period or there is still probability that base tariffs will be reviewed next year?
  • Answer - Tariffs will be recalculated every year depending on situation in regulative account.
  • Question - While participating in auction for 2-year product shall Auction participant express his bid as EUR/MWh/storage cycle or EUR/MWh/2-storage cycle period?
  • Answer - Auction participant shall express his bid as EUR/MWh/2-storage cycle period/