Conexus revises allocation of transmission system capacity and Inčukalns UGS injection capacity

With the start of the withdrawal season of the Inčukalns Underground Gas Storage (UGS) and at the same time ensuring the availability of the Inčukalns UGS injection capacity, JSC Conexus Baltic Grid (hereinafter - Conexus) has revised the procedure for the allocation of natural gas transmission system capacity and UGS injection capacity, to ensure that gas transported from the Klaipeda LNG terminal and the Lithuanian-Polish natural gas interconnector (GIPL) is injected into storage as much as possible. The capacity allocation procedure shall provide for priority for injection into Inčukalns UGS of flows from the LNG terminal and GIPL, and the priority shall be determined within the congestion management of Inčukalns UGS in accordance with the congestion management procedure established in the Inčukalns UGS Terms of Use.

Conexus has made clarifying amendments to the capacity allocation procedure so that it is applied only for the purpose of ensuring that gas transported from Klaipeda LNG and the Lithuanian-Polish natural gas interconnector is injected into storage as much as possible. The revised capacity allocation procedure can be found HERE.

The main changes to the capacity allocation procedure are as follows:

• Priority is given only on gas days when nominations are submitted at the Luhamaa entry point;
• In case the priority requirement exceeds the amount of gas available for injection on a gas day, the storage injection volumes are allocated according to the congestion management principles of the storage use rules, instead of the priority amount requested in the system users applications;
• Priority is distributed between one-year and two-year bundled capacity products if more than one bundled capacity product is available to the system user, as this clarifies the priority allocation procedure;
• The procedure shall be valid until December 31, 2022.

The amendments to the Capacity Allocation Procedure enter into force on November 10, 2022.This obligation was imposed on Conexus on March 8, 2022 by a Cabinet of Minister’s decision providing for the declaration of an early warning level in the natural gas supply sector.