13.05.2015

Spatial Planning and Engineering Design Works of the Poland-Lithuania Gas Interconnection Project Were Granted Financial Assistance of the European Union

Poland's gas transmission system operator, Gas Transmission Operator GAZ-SYSTEM S.A. and Lithuania's natural gas transmission system operator, AB Amber Grid signed a tripartite agreement with the European Union's (EU) Innovation Network Executive Agency (INEA) on the financial assistance of the EU to the Project "Preparatory Works for the Poland-Lithuania Gas Interconnection up to building permission(s) obtainment". Under this Agreement, the Project was granted financial assistance of the EU of EUR 10.6 million under the Connecting Europe Facility (CEF).

The preparatory works of the Project were granted the maximum intensity of the EU financial assistance  for studies – 50 percent. Of the total amount, AB Amber Grid was granted EUR 2.5 million, and GAZ-SYSTEM S.A. was granted EUR 8.1 million. Total estimated value of the “Preparatory Works for the Poland-Lithuania Gas Interconnection (GIPL) up to building permission(s) obtainment” amounts to EUR  21.2 million.

The GIPL project aims at the integration of the Baltic States gas markets into a single gas market of the European Union, at the diversification of gas supply sources and at the enhancement of the security of gas supplies. That is a reason why the Project has been identified by the EC as one of the key security of supply infrastructure projects critical for EU's energy security in the short and medium terms. On 14 October 2013, the Project of Gas Interconnector Polish – Lithuania was granted the status of Project of Common Interest (PCI) by the European Commission.

The GIPL Project is implemented in cooperation with the Lithuanian gas transmission system operator, AB Amber Grid.

Preparatory works for the implementation of the  GIPL Project were started back in 2009. The year 2011  saw the preparation of the GIPL Business Environment Analysis and the year 2013 marked the preparation of the Feasibility Study of the GIPL Project. The GIPL Project's Environmental Impact Assessment Procedures on the Polish territory began back in 2013 and are scheduled for completion in 2016.

The prospective gas transmission pipeline (diameter 700 mm) will connect gas compressor stations of the two countries: the Lithuanian Gas Compressor Station of Jauniūnai and the Polish one of Rembelszczyzna. Total length of the prospective gas pipeline is 534 km, of which about 357 km fall within the territory of Poland.

Estimated value of the GIPL Project: EUR 558 million, of which in the territory of Poland EUR 422 million and in the territory of Lithuania EUR 136 million. Launch into operation of the GIPL is scheduled for 2020.

The GIPL Project was included in the European Network of Transmission System Operators for Gas (ENTSOG) Ten-Year Network Development Plan (TYNDP) 2013-2022, the Baltic (BEMIP) Region's Gas Regional Investment Plan 2014-2023.

press release download: Spatial Planning and Engineering Design Works of the Poland-Lithuania Gas Interconnection Project Were Granted Financial Assistance of the European Union

GAZ-SYSTEM is a strategic company for the Polish economy. It is responsible for the transmission of natural gas, manages the most important gas pipelines in Poland and owns the President Lech Kaczyński LNG Terminal in Świnoujście.

As part of the 2015-2025 investment programme, GAZ-SYSTEM is constructing over 2000 km of new gas pipelines in the western, southern and eastern parts of Poland. Over a dozen new gas pipelines are under construction within the North-South Gas Corridor and the compressor station in Kędzierzyn Koźle, as well as interconnections with Lithuania and Slovakia. Onshore gas pipelines are planned to connect the planned FSRU floating terminal in the Gulf of Gdansk with the national transmission system. The LNG Terminal in Świnoujście is also being extended, as a result of which the regasification capacity of this facility will be increased by more than a half.

The company is also implementing one of the most important infrastructural projects in the country - the Baltic Pipe project which consists in the construction of a two-way offshore gas pipeline connecting Poland and Denmark, expansion of the local transmission network and three gas compressor stations.

 


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