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 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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