10.11.2010

Supply of pipes for the construction of the gas pipeline in Lower Silesia

GAZ-SYSTEM S.A. has signed another partial agreement for the supply of 8,000 metres of gas pipeline 500 mm diameter for the performance of the Jeleniów – Dziwiszów pipeline in Lower Silesia.

The partial agreement concluded withn the framework agreement dated August 2010 was signed with the consortium, which comprises of the following companies:  FERRUM S. A. - Consortium leader, STEELTUBES Sp. z o.o., UNISET Rury Stalowe-Steel Pipes Janusz Gaczyński and U.S. STEEL KOSICE s.r.o.
    
The investment is a significant element strengthening the security of gas supplies to Poland and creating the technical infrastructure necessary to transport gas from other directions apart from the East. The Jeleniów–Dziwiszów pipeline along with the other pipelines being established in Lower Silesia will enable the off-take of increased volumes of gas from the Lasów point on the Poland-German border.

As a result of the public tender proceedings completed in August 2010, GAZ-SYSTEM S.A. has signed framework agreements for the supply of pipes for the completion of strategic gas transmission pipelines with two contractors - IZOSTAL S.A. and a consortium, the leader of which is Ferrum S.A. Given orders are being carried out under separate partial agreements concluded each time after acceptance of the most advantageous offer. This method of completing investment projects consisting of purchasing the materials required in the construction of the gas pipeline (pipes and fittings) directly from the producer enables GAZ-SYSTEM S.A. to speed up the investment work stage and improve the cost effectiveness of the project.

GAZ-SYSTEM S.A. is planning to build over 1,000 km of new gas transmission pipelines by 2014. The strategic gas pipelines will be constructed in northwestern and central Poland as well as in Lower Silesia. They will include the following connections: Szczecin-Lwówek, Świnoujście - Szczecin, Szczecin – Gdańsk, Włocławek – Gdynia, Rembelszczyzna – Gustorzyn, Gustorzyn - Odolanów, Taczalin - Radakowice - Gałów, and Jeleniów – Dziwiszów.

GAZ-SYSTEM S.A. is also responsible for the performance of interconnectors. Apart from the development of the connection in Lasów on the Polish-German border, whose capacity shall be increased to 1.5 bn m3 annually, GAZ-SYSTEM S.A. is also building a gas pipeline to the Czech Republic, which will be Poland's second interconnector with the gas system of the European Union. It will enable the annual transmission of approx. 0.5 bn m3 of natural gas. GAZ-SYSTEM S.A. is also conducting preparatory works on the offshore pipeline connecting the transmission systems of Poland and Denmark, referred to as the Baltic Pipe.

Many of the strategic investments fulfilled by GAZ-SYSTEM S.A. have obtained funding from the European Union. The Company was awarded funding from the following EU programmes: EEPR (European Energy Programme for Recovery), TEN-E (Trans-European Networks – Energy), IE OP (Innovative Economy Operational Programme) and OPI&E (Operational Programme Infrastructure and Environment).


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