GAZ-SYSTEM S.A. completed the acceptance of pipes for the construction of strategic gas pipelines.

On 23 August 2013, the last batch of 700 mm pipes was delivered to the construction site of the Rembelszczyzna – Gustorzyn pipeline. This means that the framework agreement of 26 January 2011 concerning the supply of approximately 890 km (184,000 tonnes) of insulated steel pipes to construct gas pipelines at sections: Świnoujście-Szczecin, Szczecin-Gdańsk, Szczecin-Lwówek, Gustorzyn-Odolanów, and Rembelszczyzna-Gustorzyn was completed.
To carry out its strategic projects, GAZ-SYSTEM S.A. applied a different practice than in the case of its earlier investments. It consisted in much bigger involvement of the very investor. GAZ-SYSTEM S.A. organised pipe and fitting tenders on its own and then signed framework agreements concerning the delivery of materials necessary to construct strategic gas pipelines with contractors.       
Contractors selected under the public tender:                                                                                           
1. Consortium of FERRUM S.A. (Consortium Leader), STEELTUBES Sp. z o.o., UNISET Rury Stalowe-Steel Pipes Janusz Gaczyński, U.S. STEEL KOSICE s.r.o. (Slovakia);
2. Consortium of IZOSTAL S.A. (Consortium Leader), IMPEXRUR S.A.;  ArcelorMittal Tubular Products Ostrava a.s. (the Czech Republic);
3. Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (Turkey)
delivered 889 535 meters of DN 700 pipes of L485MB steel and DN 800 mm pipes of L555MB steel during two years on the basis of 17 separate fragmental agreements.

GAZ-SYSTEM S.A. executed those agreements case by case upon the acceptance of the best pipe offer. The total net value of all agreements is around PLN 835 million.

Investor pipe deliveries were received at production places and storage yards prepared by Contractors carrying out building works by inspectors of Bureau Veritas Polska Sp. z o.o. adequately trained employees of GAZ-SYSTEM S.A. 

The investor delivery formula enabled in particular to:
• define uniform top quality technical standards of GAZ-SYSTEM S.A. with regard to steel pipes and their external and internal insulation that guarantee safe gas pipeline operation;
• use the effect of scale with regard to the purchase of pipes and obtain competitive pipe prices under subsequent partial orders;
• accelerate projects: the contractor carrying out building works received pipes from the investor just after signing its agreement.

GAZ-SYSTEM S.A. taking over the finance of investor deliveries has also significantly improved the financial standing of contractors carrying out particular building works since they did not bear risks connected with the pipe and fitting buying prices.
The investor delivery method is an essential element of infrastructural projects carried out by GAZ-SYSTEM S.A. The company implemented such a new organisation of its investment process to manage its projects better, earn additional savings resulting from the large scale of purchase transactions, and reduce risks substantially.

To implement the new investment method consisting in investor deliveries, great work consumption and the involvement of a professional team were also necessary.

In its future strategic investments the company plans to apply the same scheme of conduct consisting in the separation of a contractor agreement from a pipe and fitting delivery agreement.
Till the end of 2014, GAZ-SYSTEM S.A. will complete the construction of 1000 km of new high pressure gas transmission pipelines of over PLN 8 billion.

press release download: GAZ-SYSTEM S.A. completed the acceptance of pipes for the construction of strategic gas pipelines.

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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