21.08.2014

The Polish and Lithuanian gas transmission system operators submitted applications for EU support for the project Gas Interconnection Poland-Lithuania

On 19 August 2014, the Polish and Lithuanian natural gas transmission systems operators GAZ-SYSTEM S.A. and AB Amber Grid submitted joint applications to the Innovation & Networks Executive Agency  (INEA) for  the co-financing of the project  Gas Interconnection Poland – Lithuania (GIPL) from Connecting Europe Facility (CEF).

Two applications were submitted, including: one of them to receive EU financial support for territory planning and design stages, and another for construction works.

Following the provisions of the legal acts for CEF, the maximum amount for co-funding for territory planning and engineering stages is up to 50 per cent, meanwhile, the maximum support for construction works amounts to up 75 per cent of eligible costs.

GAZ-SYSTEM  S.A.  together with our Lithuanian  partner  have decided to apply for the  financial support for the Gas Interconnection Poland – Lithuania in order to enhance the integration and the purchase possibilities’ offered to the market players in Lithuania and in the  all Baltic Region countries. GIPL project is aimed at strengthening the security of supply and ensuring full diversity of supply sources for the Baltic Region. The financial support granted for this project will help to realize the strategic goals of the energy policy of the European Union, including integration of the isolated gas markets of the Baltic States with the EU gas market.”Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A. said.

The submission of joint applications for the EU support is an important step into the implementation of the project aimed to integrate the isolated gas markets of the Baltic States into the EU gas market as well as to increase the security of natural gas supply and competitiveness of the regional market,“ - Saulius Bilys, General Manager of AB Amber Grid said.

The estimated value of the GIPL project amounts to EUR 558 million, including EUR 422 million in the territory of Poland, and EUR 136 million in the territory of Lithuania. 

On 11 August 2014, the European Agency for the Cooperation of Energy Regulators (ACER) took a decision on Cross-Border Cost Allocation of the GIPL costs among Poland, Lithuania, Latvia and Estonia. The ACER’s decision made available for the project promoters to apply for the financial support from CEF.

In October 2013, the European Commission approved the List of Projects of Common Interest in which the GIPL project was recognized as a project of regional importance.


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AB Amber Grid is the operator of Lithuania’s natural gas transmission system. 96,58 per cent of AB Amber Grid shares are owned by UAB EPSO-G (controlled by the Ministry of Energy of the Republic of Lithuania).
 
Contact person:

Mindaugas Grinius
Press Officer of AB Amber Grid
Tel. +370 232 7750, mobile +370 698 41212
e-mail: m.grinius@ambergrid.lt

 

 

GAZ-SYSTEM plays a strategic role in the Polish economy. We are responsible for natural gas transmission and operate the most important gas pipelines in Poland. As part of the 2015-2025 investment programme, GAZ-SYSTEM plans to build over 2000 km of new gas pipelines in western, southern and eastern parts of Poland. Further development of the national transmission network, including the construction of new gas pipelines making part of the North-South Gas Corridor, as well as the construction of interconnections with the neighbouring countries, will strengthen Poland’s energy security and make an important contribution to the development of the European transmission system.

The Company is implementing one of the most important infrastructural projects in Poland – the Baltic Pipe project, which consists in the construction of a bidirectional offshore gas pipeline connecting Poland and Denmark and the expansion of the local transmission network.

GAZ-SYSTEM also owns Polskie LNG, the operator of the President Lech Kaczyński's LNG Terminal in Świnoujście.

 


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