17.09.2015

Completion of the Szczecin-Lwówek gas pipeline finalizes the investment program of GAZ-SYSTEM S.A.

The Governor of West Pomeranian province issued a permit for use for the last section of the high pressure gas pipeline on the Szczecin-Lwówek route. This finalized execution of GAZ-SYSTEM S.A.’s investment plan for 2009-2015, under which more than 1,200 km of new gas transmission pipelines were built in Poland.

The completed pipeline, with a diameter of 700 mm and a total length of approx. 188 km, is located in the Provinces of West Pomeranian, Greater Poland and Lubuskie. The project was implemented in two stages: Szczecin – Gorzów Wielkopolski with a length of approx. 118 km and Gorzów Wielkopolski - Lwówek with a length of approx. 70 km. 

The investment was implemented on the basis of the Law of 24 April 2009 on investments concerning liquefied natural gas regasification terminal in Świnoujście. With its completion it will be possible to transmit gas from the new point of supply in the north (the LNG terminal in Świnoujście) to central Poland.

Total expenditures involved in construction of the Szczecin-Lwówek gas pipeline amounted to PLN 586.71 million, with PLN 164.78 million subsided by the EU’s Operational Programme Infrastructure and Environment.

2015 is a special year for us, because of completion of major projects which - on this scale - have not yet been implemented in the history of the Polish gas industry. In the years 2009-2015 we managed to build 1283 km of new gas transmission pipelines, 41 gas stations and 2 compressor stations. These investments enabled modernization and expansion of the Polish transmission network, which greatly improved the flexibility of gas transmission in Poland, contributed to liberalization of the Polish gas market, and for our company - opened up new business areas and expanded our customer base. The completed expansion of the Polish transmission system, including cross-border connections and the reverse flow services on the Yamal pipeline, significantly enhanced Poland’s technical capabilities in regard to the import of gas to Poland from the European Union states. Our customers have already been benefiting from these new technical possibilities - says Sławomir Śliwiński, Member of the Board of GAZ-SYSTEM S.A.

The most important gas pipelines built by GAZ-SYSTEM S.A. are the Świnoujście-Szczecin, Gustorzyn-Odolanów, Szczecin-Gdańsk, Szczecin-Lwówek, Rembelszczyzna-Gustorzyn connections, as well as the modernization of the transmission system in Lower Silesia.

The success of these projects depended largely on the proper organization of the investment process by the investor. It was an original idea of GAZ-SYSTEM S.A. to take responsibility for the supplies of pipes and fittings for strategic projects. This approach helped to minimize the risk, while reducing the cost of purchase. Effective implementation of the largest gas investments in Poland also required the implementation of appropriate business tools for project management and proper preparation of employees for performance of their new tasks. We have built competencies in the company that allow us to effectively implement investment projects in compliance with all applicable standards. These experiences are very useful for performance of our next investments - says Jakub Stypuła, Investments Division Director in GAZ-SYSTEM S.A.

Currently, GAZ-SYSTEM S.A. is Poland’s largest sector investor, and conducts regular consultations with suppliers which allows the company to set the standards on the pipes & fittings manufacturers’ market and the construction & assembly contractors’ market.

Investments of GAZ-SYSTEM S.A. are carried out with application of modern technologies and using high quality steel with external three-layer polyethylene coating and the state-of-the-art protection systems (cathodic protection system). This ensures trouble-free operation, preventing gas emissions to the environment, surface water or groundwater.

Investments of GAZ-SYSTEM S.A. are carried out with respect for the natural environment and in accordance with the requirements of both the Polish and EU law. For all constructed gas pipelines proper environmental decisions were developed and the guidelines contained therein were followed. Throughout the entire period of the investments’ execution, the professional environmental and archaeological supervision was provided, as well. During construction of gas pipelines in the years 2009-2015, the HDD trenchless drilling technology was used more than 60 times, which allowed us to minimize the impact of the investment on the environment.

Effective performance of the investment program required an optimum financing arrangement. The company managed to become one of the biggest EU funds beneficiaries in Poland in the field of infrastructural investments. GAZ-SYSTEM S.A. projects were co-financed from the three EU programmes, and the largest amount of funding – the total of ca. PLN 1 billion - came from the Operation Programme Infrastructure and Environment 2007-2013. This represents 30% of the value of the entire investment plan implemented in 2009-2015.

The loans obtained from commercial banks and European financial institutions such as the European Investment Bank or the European Bank for Reconstruction and Development also played a great role in financing the investments.

2015-2023 Investment Programme
The next stage of development of the Polish transmission system is construction of new gas pipelines as part of the North-South gas corridor supported by the European Union; this will allow for the full integration of the transmission infrastructure in this part of Europe. For that purpose, in 2015-2023, GAZ-SYSTEM S.A. intends to build a total of approximately 2000 km of new gas pipelines in western, southern and eastern parts of Poland. Deployment of new gas connections with the Czech Republic, Slovakia and Lithuania is also planned in this time span. 

press release download: Completion of the Szczecin-Lwówek gas pipeline finalizes the investment program of GAZ-SYSTEM S.A.

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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