17.04.2020

ANOTHER EXECUTORY AGREEMENT FOR THE POLISH - LITHUANIA GAS PIPELINE

GAZ-SYSTEM has concluded an agreement for the performance of construction works related to the second part of the northern section of the Poland-Lithuania gas interconnector.

The contract for construction works on the section between Konopka – Kuków (approx. 77 km long) was signed with a consortium of companies led by NDI Energy Sp. z.o.o. Thus, GAZ-SYSTEM has entered into executory agreements for two of the three sections of the northern route of the Polish-Lithuanian gas interconnector (GIPL) - in March this year a contractor for construction works was hired for the third part of this section of the GIPL (Kuków – Border of the Republic of Poland).

The Poland-Lithuania gas pipeline represents an important element as far as the integration of gas markets in the Baltic States is concerned. The signed agreement express the consistent implementation of the investment despite current restrictions caused by the epidemic. This is feasible by dint of the current cooperation between GAZ-SYSTEM and the contractors,” said Artur Zawartko, Vice-President of the Management Board of GAZ-SYSTEM. 

The company is monitoring the market and conducting an active dialogue with its contractors, which allows developing optimal solutions for the parties and rendering both safe and effective work possible,” Zawartko added.

Northern section of the Poland - Lithuania gas pipeline 

The northern section of the GIPL is approx. 185 km long and has a diameter of 700 mm. It will be located in two voivodeships: Podlasie and Warmian-Masurian. It will span 5 poviats and 16 communes. Several accompanying structures will be erected under the project, as these are necessary for ensuring the proper and safe operation of the infrastructure. The said structures include the so-called Block and Bleed Units (BBU) positioned every 20-30 km along the pipeline, as well as access roads and power grid connections. 

The northern part of the Poland - Lithuania pipeline comprises three sections to be constructed as separate undertakings:

1) section (approx. 61 km long) located in Kolno and Grajewo poviats in Podlasie Voivodeship;
2) section (approx. 77 km long) located in Grajewo and Suwałki poviats (Podlasie Voviodeship) and in Ełk poviat (Warmian-Masurian Voivodeship);
3) section (approx. 47 km long) located in Suwałki and Sejny poviats in Podlasie Voivodeship.

As of today, the evaluation of bids for the first part of the northern section and two parts of the southern section of the GIPL is underway, wherein preparatory works are being carried out.  

The total value of EU subsidies for the GIPL equals EUR 266.4 million (for both investors - GAZ-SYSTEM and Amber Grid, the Lithuanian transmission system operator), and financing is provided under the EU’s “Connecting Europe” facility. 

 

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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