Spaudos centras
Spaudos centras
Lithuania has all suitable conditions for the construction of Syderiai underground gas storage facility, as confirmed by the results of five-year studies presented today at Government’s meeting.
“Latvia has not as yet implemented the EU‘s Third Energy Package, nor has it established clear and non-discriminatory rules for third party access to the Inčukalns Underground Gas Storage Facility, therefore, Lithuania is simultaneously considering an alternative of storing gas in Syderiai and working to secure the required EU‘s financial support and participation of regional partners in this project”, says Prime Minister Algirdas Butkevičius.
According to the Head of the Government, having the possibility to store natural gas under flexible and economically attractive conditions is among Lithuania’s priorities, as it will provide an opportunity to benefit from gas price fluctuations in the international LNG market, level off gas consumption differences in Lithuania and increase energy security.
AB Lietuvos Energijos Gamyba has completed studies on the suitability of the Syderiai geological structure for the construction of a gas storage facility. The results have been positive. According to the economic study, the best implementation of the project may be achieved by attracting EU funding and using the storage facility for the regional needs of strengthening energy security. The cost-benefit analysis of the project has shown that the needs of regional security would be served best by 500 million cubic metres facility. However, the operational capacity might as well be increased, if necessary.
According to the study, the facility could partially serve Polish market needs, as natural gas consumption in Poland exceeds that in Lithuania by 5.5 times, besides it has high demand for gas storage and high level of prices.
Preliminary budget requirement amounts to LTL 1.081 billion, including LTL 600 million for infrastructure installation and LTL 481 million for the formation of 500 million cubic metres gas cushion to maintain the required level of gas pressure (assuming that the natural gas price in the final phase of the formation of the cushion is the same as now).
Considering large initial investment requirements as well as enhancement of gas supply security across the entire region, a decision has been made to apply to the Connecting Europe Facility (CEF) for funds. Therefore, it is necessary to open up a dialogue with Poland‘s competent authorities and energy companies to see Poland‘s readiness to support the project in the upcoming selection of EU projects of common interest, as well as their interest in using the services of the Syderiai underground natural gas storage facility.
With partial funding from the EU, the Syderiai underground natural gas storage facility could be built in 7 years. The facility would ensure natural gas supply security, in case of disruption for technical failures or any other causes, and it would also help meeting seasonal fluctuations in demand for natural gas.