26.07.2010

Construction of new gas pipelines in Lower Silesia starts up – next step towards improving the safety of gas deliveries to Poland

On 14 July 2010 GAZ-SYSTEM S.A. signed over PLN 20 million worth contract for supply of pipes for construction of over 30 km long Taczalin-Radakowice-Gałów pipeline in Lower Silesia.

The pipe supplier will be consortium led by Ferrum S.A., which was selected under the public procurement procedure. The pipes will be supplied within 6 months starting form the date of contract signature.

As the result of this contract, GAZ-SYSTEM S.A. will be able to complete the construction works on the 40 km long gas pipeline Taczalin-Radakowice-Gałów in 2010, and put it into operation in 2011.

The construction of new gas pipelines in Lower Silesia will ensure transmission of larger amounts of natural gas through Lasowo hub from Germany by the end of 2011. As a result thereof, Poland will be able to receive additional 0.5 billion cu. m. of gas from the western direction. The existing Lasowo hub capacity allows to receive about 0.9 billion cu. m. of gas per year.

“The development of Lower Silesia gas pipelines is a key project which allows to increase gas transportation capacities from Germany. The project is an element of the internal Polish transfer infrastructure development and, at the same time, it fits well in the EU policy of developing an integrated natural gas transfer network in Europe” – said Jan Chadam, President of GAZ-SYSTEM S.A. Management Board.

The development of the gas pipelines system in Lower Silesia has been granted the European Commission subsidy of EUR 14.4 billion under the European Energy Programme for Recovery (EEPR, Recovery Plan) which is to contribute to the economic recovery in the European Union and to an improved security of energy supply through the construction of cross-border infrastructure. The EU funds will be spent on construction of the Taczalin–Radakowice–Gałów gas pipeline as well as on the renovation of Dziwiszów-Taczalin gas pipeline, construction of Jeleniów II Gas Compression Station, and development of the Lasowo link. In total, over 200 km of new pipelines for natural gas transmission will be constructed in Lower Silesia.

 
Apart from the Lasowo link extension, GAZ-SYSTEM S.A. is constructing a gas pipeline connection with the Czech Republic; it will be the second interconnector between Poland and the EU gas supply system and will ensure transmission of about 0.5 billion cu. m. of natural gas per year. The pipeline on the Polish territory will be about 20 km long. The planned pipeline length on the Czech territory is about 10 km.
 
GAZ-SYSTEM S.A. intends to build over 1000 km of new transmission pipelines by 2014. All strategic pipelines are now under construction. The key sections will be constructed in north-western and central Poland (Szczecin-Lwówek, Świnoujście - Szczecin, Szczecin – Gdańsk, Włocławek – Gdynia, Rembelszczyzna – Gustorzyn, Gustorzyn - Odolanów). 

In view of a huge scope of works, GAZ-SYSTEM S.A. has decided to purchase pipeline construction materials (i.e. pipes and valves) directly from the manufacturer in order to optimise project implementation. Therefore, the Company will avoid additional margins and make considerable savings. This is the Company’s strategy to improve its cost effectiveness.

 


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