23.03.2018

The cost allocation between Poland and Denmark approved by national regulators

The Polish Energy Regulatory Office (ERO) and the Danish Energy Regulatory Authority (DERA) have issued a coordinated decision regarding the cross-border cost allocation of the Baltic Pipe project.

The decision was issued on the basis of a joint application submitted by GAZ-SYSTEM and Energinet pursuant to Article 12 sec. 3 of Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure.

According to the regulation, the project promoters shall submit an investment request together with a proposal of cross-border cost allocation to all national energy regulatory authorities in the Member States where the project is expected to have a significant positive net impact. In the case of the Baltic Pipe project which is generating the positive net impact in both countries involved – i.e. in Poland and Denmark, the investment request was submitted jointly by GAZ-SYSTEM and Energinet to the ERO and DERA respectively.

The approval reflects the economic, social and environmental costs and benefits arising from the implementation of the Baltic Pipe project for the Member States concerned, as well as the possible need for financial support.
 

Read more about the decision:

The Danish Energy Regulatory Authority 

Urząd Regulacji Energetyki

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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