The Innovation and Networks Executive Agencies (INEA) under the European Commission approved allocation of funds for the implementation of Lithuanian-Latvian gas pipeline capacity enhancement project. The decision confirming this fact was adopted in Brussels on the 2nd of October, 2019. It is planned that the total investment for this project will amount to EUR 10.2 million.
The share of Lithuanian investment in this project will amount to 4.7 million euros. The European Commission will grant the EU support under the Connecting Europe Facility (CEF) for the construction phase of extension of Lithuanian-Latvian gas pipeline connection – up to 50% of the eligible project costs, i.e. EUR 2.1 million.
In June of this year, Lithuanian transmission system operator Amber Grid, which will implement the project, together with Latvian operator Conexus Baltic Grid, has lodged a funding application for the project of enhancing the capacity of the gas pipeline linking Lithuania and Latvia.
The enhanced gas transmission capacity between Lithuania and Latvia will facilitate market access to Klaipėda LNG terminal, the Latvian Inčukalns Underground Gas Storage Facility and the GIPL connection that will be operative at the time.
The extension of Lithuanian-Latvian gas pipeline connection would be the third project of common European interest, including Klaipėda-Kiemėnai gas pipeline capacity enhancement project, and the GIPL gas interconnection Poland – Lithuania project, in the implementation of which Amber Grid participates.
A Feasibility Study and Cost-benefit Analysis of the Project of enhancing the capacity of the gas pipeline interconnection between Lithuania and Latvia, conducted in 2018, showed that greater capacity will be required to meet the regional gas market demand and ensure security of gas supply after the gas connections between Finland and Estonia, and between Poland and Lithuania will be constructed.
Lithuanian-Latvian gas pipeline capacity enhancement project is expected to be completed by the end of 2023. The Project implementation is expected to continue once the project funding is received.
Public tender procurements for design work in the territory of Lithuania will be launched in the near future. Public tender procurements for construction work are preliminary planned to be launched in the first half of 2021.
Works that are planned to be carried out during the project on Lithuanian side include enhancement of capacity of Kiemėnai gas metering station and reconstruction of gas pipeline at Panevezys compressor station, and on Latvian side – works on the redevelopment of the trunk pipeline to increase the maximum working pressure from 40 to 50 bar. The investments will enhance the gas connection capacity to 130.47 GWh per day in the Latvian direction (now 67.6 GWh per day) and to 119.5 GWh per day in the Lithuanian direction (now 65.1 GWh per day).
The project is listed on the list of the EU projects of common interest, a 10-year development plan of European Network of Transmission System Operators for Gas (ENTSOG), and the National Key Electricity and Gas Transmission Projects Implementation Priority Plan.
