30.12.2013

More than PLN 4.63 million from European Funds for GAZ-SYSTEM's subsequent investment projects

GAZ-SYSTEM's subsequent investment projects, i.e. “Lwówek-Odolanów gas pipeline – preparation of project documentation” and “Czeszów-Kiełczów gas pipeline – preparation of project documentation” will receive more than PLN 4.63 million from European Funds – the Operational Programme Infrastructure and Environment (OPIE).

On 20 December 2013, GAZ-SYSTEM S.A. signed with the Oil and Gas Institute – the National Research Institute (Implementing Institution) the agreement for co-financing the following projects: “Lwówek-Odolanów gas pipeline – preparation of project documentation” and “Czeszów-Kiełczów gas pipeline – preparation of project documentation” within the framework of the Operational Programme Infrastructure and Environment 2007–2013. The project encompasses preparation of design documentation for construction of Lwówek-Odolanów and Czeszów-Kiełczów gas pipelines.

Lwówek-Odolanów and Czeszów-Kiełczów gas pipelines will be located in dolnośląskie and wielkopolskie voivodships. The projects constitute an important element of strengthening the security, reliability and flexibility of the Polish gas transmission system. Projects consisting in preparation of technical documentation for Lwówek-Odolanów and Czeszów-Kiełczów gas pipelines constitute an initial stage for future investments with significant importance to energy security of Poland as well as adjacent countries, also in the context of building the North-South Central European Gas Corridor.

Construction of Lwówek-Odolanów gas pipeline will make it possible to send larger quantities of gas and it will constitute an element of connection between the LNG Terminal in Świnoujście and Czech Republic and Slovakia via interconnections.

The 1000 mm diameter pipeline will be approx. 170 km long and it has been divided into two stages:

• Stage I includes connecting the Lwówek, Kotowo and Krobia connection points (approx. 110 km).

• Stage II includes connecting the Krobia and Odolanów connection points (approx. 59 km).

The project works related to the line began in the second quarter of 2013, and it is expected that the final selection of the route will be made, the final administrative permits will be obtained and the technical documentation will be prepared by mid-2015.

The subject matter of the agreement entered into with the Oil and Gas Institute – the National Research Institute is to grant co-financing from the Operational Programme Infrastructure and Environment for the pipeline's design stage in the amount of PLN 3.76 million. Estimated net value of the entire project is PLN 7.4 million.

Czeszów-Kiełczów gas pipeline is an element of expansion of the gas transmission system in Dolny Śląsk region and the assumed investment program related to launching the LNG Terminal in Świnoujście and building the North-South Central European Gas Corridor.

The pipeline with length of approx. 33 km and diameter of 1000 mm will be located in dolnośląskie voivodship. Construction of Czeszów-Kiełczów gas pipeline is an important element of strengthening Poland's energy security. Together with other gas pipelines, which will be built in Dolny Śląsk region, the new section with highest working parameters will enable transmission of larger quantities of gas and it will constitute an element of North-South Corridor. Designing of gas pipeline began in the third quarter of 2013, and the investment work will begin at the end of 2016.

The subject matter of the agreement entered into with the Oil and Gas Institute – the National Research Institute is to grant co-financing from the Operational Programme Infrastructure and Environment for the pipeline's design stage in the amount of PLN 0.87 million. The estimated net value of the entire project is PLN 1.63 million.

The total amount of EU funds available under the Operational Programme Infrastructure and Environment 2007-2013 for GAZ-SYSTEM S.A.'s projects is approx. PLN 1.2 billion. At present, the EU funds constitute up to 30% of share in financing GAZ-SYSTEM S.A.'s strategic investments.

 

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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