01.08.2012

More GAZ-SYSTEM S.A. gas pipelines with approved EU co-funding

On 24 July 2012, the European Commission issued a decision on the approval of co-funding in the amount of 303,96 mln PLN for the project of constructing the Gustorzyn-Odolanów gas pipeline. The next decision of the Commission, issued on 26 July 2012, approved the award of aid for the construction of the Szczecin-Lwówek gas pipeline, amounting to 233,34 mln PLN.

These decisions signify that the projects fulfilled by the GAZ-SYSTEM S.A. Company have satisfactorily met a series of conditions concerning environmental, material and property as well as financial aspects and are fully compliant with the priorities of the Operational Programme "Infrastructure and Environment" (OPIE). 

The high pressure gas pipeline on the Gustorzyn-Odolanów route with a length of 168 km which is being constructed is located in the territory of the Greater Poland and Kuyavian-Pomeranian Voivodship. The scope of the gas pipeline project encompasses two stages of construction:  Gustorzyn-Turek (83 km), and Turek-Odolanów (85 km). The investment will enable connecting to and cooperating with the Mogilno Cavern Underground Gas Storage (CUGS) as well as the seasonal storage – the Wierzchowice Underground Gas Storage (UGS). Once the project has been completed, it will provide greater gas transmission possibilities in both directions depending on the system demands, as well as enable gas off-take from both CUGS Mogilno as well as UGS Wierzchowice.
The Company has obtained all the necessary administrative decisions enabling the construction work to commence. At present, the investment is in its first stage of construction and all the tender proceedings for the performance of the project and supplies of materials have been completed. The estimated value of the investment is 638 mln PLN. The completion of the construction works and the start-up is planned for mid 2014. 
The Szczecin-Lwówek gas pipeline, which is approx. 188 km in length, will traverse the territory of the Western Pomeranian Voivodship, the Lubusz Voivodship and the Greater Poland Voivodship. It will be carried out in two stages on the section starting from the Gas Compressor Station in Goleniów to Gorzów Wielkopolski (118 km), and from Gorzów Wielkopolski to Lwówek (70 km).  The development of the transmission network in northwestern Poland is one of the priorities
of gas pipeline system investments that are being performed by GAZ-SYSTEM S.A. in view of the terminal in Świnoujście for the off-take of liquefied natural gas terminal (LNG), which is currently under construction.
GAZ-SYSTEM S.A. has already obtained all the necessary administrative decisions enabling commencement with construction work. The contractor performing the gas pipeline has been selected and investor supervision contracts for the gas pipeline construction have been signed. The estimated value of the investment is 647 mln PLN. The completion of the construction phase
and the start up is expected to take place in  2014.

In July 2012, the European Commission also confirmed the award of co-funding for the Szczecin-Gdańsk gas pipeline construction project in the amount of 226.9 mln PLN.


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Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company wholly owned by the Treasury, responsible for natural gas transmissions throughout Poland. The Company controls assets worth more than 5 billion zlotys. These assets include primarily the components of the transmission system, including more than 9,800 km of high-pressure pipelines, 14 compressor stations, 56 network connection points and 970 exit points. The company employs more than 2000 persons.

GAZ-SYSTEM S.A. will build more than 1,000 km of new gas pipelines by 2014. The most important of them will be situated in north-western and central Poland (Szczecin-Lwówek, Świnoujście-Szczecin, Szczecin-Gdańsk, Rembelszczyzna-Gustorzyn and Gustorzyn-Odolanów). The development of the gas transmission network in Poland may constitute an important element of the North – South Gas Corridor connecting the LNG terminal in Świnoujście to the planned Adria LNG terminal through the transmission infrastructure of Central European countries.

In 2011, GAZ–SYSTEM S.A. has completed the construction of the Włocławek–Gdynia gas pipeline and gas compressor stations in Goleniów and Jarosław. The Company has also opened a new Polish–Czech Interconnector that enables the transmission of approx. 0.5 bcm of gas annually. GAZ-SYSTEM S.A. has also developed gas pipelines in Lower Silesia that enable the off-take of greater amounts of gas from the western direction. The capacity at the Lasów point on the Polish-German border is currently 1.5 bcm annually (the previous capacity was 0.9 bcm a year).

The investment projects completed by GAZ-SYSTEM S.A. in 2011 have offered a possibility of using virtual reverse flow services on the Yamal pipeline and created technical capacities to import more than 3.3 bcm of gas annually to Poland from new sources (approx. 30% of the currently imported volume).


Contact:
Małgorzata Polkowska
Press Officer of GAZ-SYSTEM S.A.
Tel. 22 220 15 46, mobile 691 911 217
E-mail: pr@gaz-system.pl

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