PUC informs market participants about the anticipated tariffs for natural gas storage services

Natural Gas

Information for market participants

The new injection season at the Inčukalns underground gas storage facility is fast approaching. Considering the current natural gas market trends, the Public Utilities Commission (PUC) in cooperation with JSC “Conexus Baltic Grid” informs the market participants about the current information regarding the anticipated storage service tariffs.

The PUC continues to evaluate the storage service tariff proposal submitted by JSC “Conexus Baltic Grid”. The initially submitted tariff was equivalent to the expected difference in natural gas prices in the summer and winter months – 1.40 EUR/MWh.

During the evaluation in cooperation with the PUC, after assessing both the assumptions and the information substantiating the costs, JSC “Conexus Baltic Grid” reviewed the initially submitted tariff proposal. Considering the above, the merchant submitted an updated storage service tariff proposal, which envisages setting the tariff for the bundled capacity product at 1.04 EUR/MWh. The evaluation of the tariff proposal is ongoing, and the final decision could be adopted by the PUC in the coming weeks.

Intars Birziņš, the acting Chairman of the PUC Board, explains: “Although we see that the forecasted difference in natural gas prices is smaller than last year, when it reached even 4 EUR/MWh, it is still economically advantageous to store natural gas at the Inčukalns underground gas storage facility. The use of the Inčukalns underground gas storage facility is a security guarantee for the availability of natural gas reserves and the safe supply of natural gas to users at times when transportation of natural gas through pipelines is not possible”.

At the same time, the PUC informs that at the Board meeting on 11 February 2020, the PUC approved the draft regulations for the auction of JSC “Conexus Baltic Grid” storage capacity, which will soon be available on the website of JSC “Conexus Baltic Grid”.

The PUC invites market participants to take into account the current market situation when planning the next injection season.

JSC “Conexus Baltic Grid” submitted the storage service tariff proposal to the PUC for evaluation on 28 October 2020.