Conexus: demand for natural gas increased in the first half of the year
The turnover of the unified natural gas transmission and storage system operator JSC Conexus Baltic Grid (Conexus) in the first six months of this year reached EUR 50 million, which is 1.5 times more than in the same period of the previous year, according to data on the company's performance in the first half of 2024. The revenue growth was driven by higher demand for both natural gas transmission and storage services.
At the end of the reporting period, 30 June 2024, Inčukalns Underground Gas Storage (UGS) had stored 14.5 TWh of natural gas (including 1.8 TWh safety reserves of energy supply), which is 4% more than at the same time last year. In the reporting period, the filling level of Inčukalns UGS was at its highest in the last five years.
Natural gas consumption by Latvian consumers in the first six months of 2024 amounted to 5 TWh, which is 16% more than in the same period of the previous year. The increase in natural gas consumption was mainly driven by higher electricity generation volumes, which confirms the importance of Conexus in electricity generation. Meanwhile, the total volume of natural gas transported in Latvia in the reporting period amounted to 12.9 TWh, a decrease of 12% compared to the same period last year.
In the first half of 2024, Conexus ensured uninterrupted natural gas supply to Latvia, Lithuania and Estonia, as well as Finland from April this year, when the underwater pipeline Balticconnector connecting Finland and Estonia was re-commissioned. Natural gas supplies from Inčukalns UGS amounted to 7.1 TWh, 2.1 times more than in the first six months of the previous year. 3.7 TWh were received from Estonia (1.7 times more than last year) and 2.1 TWh from Lithuania (4.5 times less than last year).
"Conexus has continued to successfully ensure safe operations of the infrastructure in the first half of the year. The highest storage filling rate in the last five years demonstrates the company's ability to maintain high security of supply. This storage filling strategy not only helps to ensure a stable energy supply, but also contributes to a favourable environment for traders who value the availability and flexibility of storage," states Uldis Bariss, Conexus’ Chairman of the Management Board.
He adds that the storage capacity exceeds the amount of natural gas needed by the Latvian market, so the demand for storage services depends mainly on the needs of traders in the region. The company is continuously working on developing competitive and relevant market offers, e.g., by introducing long-term storage products that will allow system users to plan their energy needs over a longer period and provide more flexibility and stability in a changing market.
Stable financial performance
Conexus has shown solid financial growth in the first half of the year. As a result of the revenue growth, EBITDA increased 1.9 times to EUR 37.5 million. Conexus' profit reached EUR 24.5 million, three times more than in the same period a year ago.