19.01.2012

Greater possibilities of gas imports from the West thanks to the new investment in Lower Silesia

Today, Minister Mikołaj Budzanowski opened the Jeleniów – Dziwiszów gas pipeline, which is the last element in the extension programme of the natural gas transmission system in Lower Silesia, in the Lasów region. This modern investment project will enable the increase of imports of the 'blue fuel' from the western direction by 50%, which will facilitate the implementation of genuine competition on the Polish gas market as well as the diversification of supplies.

The venture is part of the on-going liberalisation of the gas market. "The energy border has been moved. Today, we are integrating with the western gas market,” Mikołaj Budzanowski, Minister of State Treasury, remarked. "The Lasów investment is a symbol of freedom of choice and an example of modern and creating thinking,” he added.

Every market participant has access to the hub in Lasów and GAZ-SYSTEM S.A. has allocated capacity via open season among others to PKN Orlen and Zakłady Chemiczne "POLICE". Furthermore, the hub opens up new perspectives for the purchase of gas on a competitive European market at a lower price than on the eastern direction. 'The modernised transmission system in Lower Silesia will enable the transmission of increased volumes of natural gas to Poland from the western direction. The development of the transmission point in Lasów will allow for increased imports of the raw material from 1 bcm to approx. 1.5 bcm/year, which will give rise to greater independence of the Polish gas transmission system from supplies of the raw material from the East. Moreover, the completed investments will increase the level of energy security as well as the flexibility of the operations of the entire natural gas transmission system in the region of the Lower Silesian Voivodship,” Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A., commented.

The Jeleniów - Dziwiszów gas pipeline is the last element of the extension programme of the natural gas transmission system in Lower Silesia in the Lasów region, which included the following investments:
1. Construction of the Jeleniów hub and the Jeleniów Gas Compressor Station (approx. 1 km, with a diameter of 500 mm),
2. Construction of the Jeleniów – Dziwiszów gas pipeline (with a diameter of 500 mm and length of approx. 65 km),
3. Construction of the Taczalin – Radakowice – Gałów gas pipeline (with a diameter of 500 mm and length of approx. 39 km),
4. Modernisation of the Dziwiszów – Taczalin gas pipeline (increasing the head pressure)
5. Increasing the capacity of the measurement point in Lasów on the Polish-German border.

The constant development of the system of Polish gas transmission pipelines as well as interconnectors and of the LNG terminal in Świnoujście is important from the point of view of the liberalisation of the gas market because it will contribute to increasing competition, enable new entities to use the transmission system and ensure the possibility of purchasing a cheaper raw material on the European market. In 2011, thanks to the completed investments and the virtual reverse flow services on the Yamal pipeline, GAZ-SYSTEM S.A. has increased the technical capacity of natural gas imports from new directions to Poland by 3.3 bcm, which constitutes over 30 per cent of the imports to date.

In line with the completed modernisation of the infrastructure in the Lower Silesian region, GAZ-SYSTEM S.A. is preparing a programme for the further development of the entry point in Lasów. In connection with the above, the Market Screening Procedure has been announced in the scope of the further increase of capacity at the Lasów entry point in the years 2016-2025. Its results have confirmed the large interest of potential customers in the further development of the connection on the Polish-German border. The infrastructure that is being established in Lower Silesia in the future will become a part of the integrated and technically effective European transmission system functioning in compliance with the idea of energy solidarity.

The completed development of the transmission system in the Lasów region is being financed by two European Union programmes: The Operational Programme Infrastructure and Environment and the European Energy Programme for Recovery.

Within the Operational Programme Infrastructure and Environment, the construction of the Jeleniów – Dziwiszów gas pipelines was completed; the value of the co-financing amounts to approx. 43.9 mln PLN.
The remaining investments constituting the development of the infrastructure in Lower Silesia have obtained co-financing from the European Commission in an amount exceeding 14.4 mln EUR under the European Energy Programme for Recovery (EEPR). This programme is to contribute to raising energy supply security thanks to the development of the cross-border infrastructure in the European Union.

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The Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company for the Polish economy responsible for natural gas transmissions throughout Poland. The Company manages assets worth in excess of 5 bn PLN comprised mainly of elements of the transmission system, e.g. more than 9.7 thousand km of high pressure pipelines, 15 compressor stations, 56 hubs and 970 exit points. The Company employs over 2,000 people. GAZ-SYSTEM S.A. will build over 1,000 km of new gas transmission pipelines by 2014. The most important will be constructed in North Western and Central Poland (Szczecin-Lwówek, Świnoujście-Szczecin, Szczecin-Gdańsk, Włocławek-Gdynia, Rembelszczyzna-Gustorzyn, and Gustorzyn-Odolanów), as well as in Lower Silesia (Polkowice-Żary, and Jeleniów-Dziwiszów). The development of the gas pipeline network in Poland may constitute an important element of the North – South Gas Corridor joining the LNG terminal in Świnoujście with the planned Adria LNG terminal and with the Nabucco gas pipeline with the aid of the internal transmission infrastructure of Central European countries.

GAZ-SYSTEM S.A. is also the owner of the LNG S.A. Company which was appointed to construct the liquefied natural gas terminal (LNG) in Świnoujście.

In 2011, GAZ-SYSTEM S.A. completed the construction of the Włocławek – Gdynia gas pipeline, the gas compressor station in Goleniów, and the gas compressor station in Jarosław. The Company has also started up the new Polish - Czech Interconnector, which will enable the transport of approx. 0.5 bcm of gas annually.

Contact:
THE MINISTRY OF TREASURY
Magdalena Kobosko
Spokesperson
Tel. 22 695 81 82, mob. 783 941 377
e-mail: media@msp.gov.pl

GAZ-SYSTEM S.A.
Małgorzata Polkowska
Spokesperson
Tel. 22 220 01 546, mob. 691 911 217
e-mail: pr@gaz-system.pl


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