GAZ-SYSTEM S.A. commences project work related to a Poland-Lithuania interconnector

10.07.2015 | Gas supply

Gas Transmission Operator GAZ-SYSTEM S.A. commences project work for the Poland-Lithuania interconnector. The project will cover the planned construction of a high-pressure gas pipeline between Rembelszczyzna and the border of Poland, including infrastructure.

The Poland-Lithuania Gas Pipeline (GIPL) is to integrate gas markets of the Baltic states with the single gas market of the European Union and improve the security of gas supplies by eliminating so-called “energy islands”, i.e. those regions that are not connected to the European energy market and depend on supplies from only one direction (Baltic states).

As part of the interconnector, in Poland a gas pipeline between Rembelszczyzna - the border of Poland of DN 700 mm and approximately 357 km long and the Gustorzyn compressor station are to be constructed. The project also provides for the expansion of the Rembelszczyzna compression station.

The contractor for the gas pipeline between Rembelszczyzna and the border of Poland, which will also supervise the project on behalf of the designer, was selected under the public bid. The agreement signed with OTS-IP Sp. z o.o. on 18 June 2015 provides for the development of complete project documentation for the construction of the gas pipeline and accompanying infrastructure. The contractor will also have to obtain an environmental decision, an investment location decision and a construction permit. The project documentation is planned to be prepared and the construction permit is planned to be obtained in 2017.

On the basis of the European Commission’s decision of October 2013, the interconnector with Lithuania is a Project of Common Interest. This means that the project is subject to best practices for permits to the extent set out in the Regulation (EU) 347/2013.

Under the Trans European Networks - Energy (TEN-E) programme, in June 2014, the European Commission granted the finance of EUR 420,000 (for AB Amber Grid and GAZ-SYSTEM S.A.), including EUR 200,000 for GAZ-SYSTEM S.A. for the project entitled: “Documentation on environmental impact evaluation for the period preceding the decision on the environmental impact of the Poland-Lithuania gas interconnector”.

In May 2015, the Polish operator of the transmission system, GAZ-SYSTEM S.A., and the Lithuanian operator of the transmission system, AB Amber Grid, entered into a trilateral agreement with the EU Innovation Network Executive Agency (INEA) on the EU’s financial aid for the measure entitled “Preparatory Work for the Construction of the Poland-Lithuania Gas Interconnector, Including a Construction Permit”. On the basis of the agreement, the project received the EU’s financial aid of € 10.6 million under the Connecting Europe Facility (CEF). The project preparatory work received the top possible financial aid from the EU for studies, i.e. 50%. €  2.5 million was granted to AB Amber Grid and EUR 8.1 million was granted to GAZ-SYSTEM S.A.

The construction of new new gas connections with EU countries is an element of another stage of the Polish transmission system development. The construction of new gas pipelines within the North-South Gas Corridor supported by the European Union and the construction of the connection with Lithuania will constitute an important contribution to the development of the European transmission system. For that purpose, GAZ-SYSTEM S.A. plans to construct approximately 2000 km of new gas pipelines in west, south and east Poland in the years 2015-2023.