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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Two major gas pipeline projects in Europe have received funding of 309 million euro ($363 million) from the European Union (EU).
The funding is divided into the grant agreement of 33 million euro ($38 million) for studies for the Gas Interconnector between Denmark and Poland (Baltic-Pipe) and 276 million euro ($325 million) for the connection agreement (final investment decision) for the Gas Interconnector between Poland and Lithuania (GIPL). Funding was awarded under the Connecting Europe Facility program, and the projects are classed as flagship projects of the EU and "key to addressing the energy challenges facing the Eastern Baltic Sea Region and Central-Eastern Europe." Industrial Info is tracking both projects.
The Baltic Pipe gas pipeline will connect Denmark and Poland to Norway's gas fields and would expand Europe's gas transmission capacity by up to 10 billion cubic metres (bcm) of gas per year. It will cost an estimated $1.9 billion to $2.5 billion to construct, and a final investment decision is expected to be reached this year. It is being funded 50-50 by the state-owned Danish transmission system operator Energinet (Fredericia) and its Polish counterpart, gas transmission operator Gaz-System SA (Warsaw, Poland). Baltic Pipe will include the expansion of the Polish and Danish gas infrastructure and consist of approximately 800-950 kilometres (km) of new pipelines with a projected start of operations by the end of 2022. It will involve constructing 105-110 km long offshore gas pipeline from Norway's pipeline Europipe II in the North Sea to a receiving terminal located North of Varde in Denmark. A new gas pipeline 210 to 230 km long will run between Egtved in Jutland and the southeastern part of Zealand, while a 260- to 310-km long offshore gas pipeline in the Baltic Sea will run between Denmark and Poland.
The GIPL project is aimed at the integration of gas markets in the Baltic States with the common gas market of the EU, in an effort to reduce its almost total reliance on Russian gas imports as well as increase the region's security of supply. It is being headed by GAZ-SYSTEM S.A. and the Lithuanian transmission system operator, AB Amber Grid. The total estimated value of construction works of GIPL is 492 million euro ($579 million). The pipeline, with a diameter of 700 millimeters, will join compressor stations in both countries Jauniūnai in Lithuania and the Polish station of Rembelszczyzna. It will measure 534 km, including 357 km running through Poland and 177 km in Lithuania. It is expected to start operating in 2020.
Following the signing of the funding agreements, Europe's Climate Action and Energy Commissioner Miguel Arias Cañete said: "A solid, modern and strategic energy infrastructure is a crucial piece of our Energy Union, and the Commission is committed to strengthen it during its mandate. By supporting the gas interconnections between Poland and Lithuania and between Denmark and Poland, two projects under our EU list of Projects of Common Interest (PCIs), we are increasing diversification of sources and energy security for the region, whilst ending the Baltic Sea energy isolation. This is what European solidarity on energy is all about, one which provides real benefits and added value to our citizens."
Earlier this week, Industrial Info reported that the EU had provided a $200 million loan via the European Bank for Reconstruction & Development to upgrade and modernise Egypt's largest refinery at Suez, as part of its plan to create alternatives to Russian gas.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The funding is divided into the grant agreement of 33 million euro ($38 million) for studies for the Gas Interconnector between Denmark and Poland (Baltic-Pipe) and 276 million euro ($325 million) for the connection agreement (final investment decision) for the Gas Interconnector between Poland and Lithuania (GIPL). Funding was awarded under the Connecting Europe Facility program, and the projects are classed as flagship projects of the EU and "key to addressing the energy challenges facing the Eastern Baltic Sea Region and Central-Eastern Europe." Industrial Info is tracking both projects.
The Baltic Pipe gas pipeline will connect Denmark and Poland to Norway's gas fields and would expand Europe's gas transmission capacity by up to 10 billion cubic metres (bcm) of gas per year. It will cost an estimated $1.9 billion to $2.5 billion to construct, and a final investment decision is expected to be reached this year. It is being funded 50-50 by the state-owned Danish transmission system operator Energinet (Fredericia) and its Polish counterpart, gas transmission operator Gaz-System SA (Warsaw, Poland). Baltic Pipe will include the expansion of the Polish and Danish gas infrastructure and consist of approximately 800-950 kilometres (km) of new pipelines with a projected start of operations by the end of 2022. It will involve constructing 105-110 km long offshore gas pipeline from Norway's pipeline Europipe II in the North Sea to a receiving terminal located North of Varde in Denmark. A new gas pipeline 210 to 230 km long will run between Egtved in Jutland and the southeastern part of Zealand, while a 260- to 310-km long offshore gas pipeline in the Baltic Sea will run between Denmark and Poland.
The GIPL project is aimed at the integration of gas markets in the Baltic States with the common gas market of the EU, in an effort to reduce its almost total reliance on Russian gas imports as well as increase the region's security of supply. It is being headed by GAZ-SYSTEM S.A. and the Lithuanian transmission system operator, AB Amber Grid. The total estimated value of construction works of GIPL is 492 million euro ($579 million). The pipeline, with a diameter of 700 millimeters, will join compressor stations in both countries Jauniūnai in Lithuania and the Polish station of Rembelszczyzna. It will measure 534 km, including 357 km running through Poland and 177 km in Lithuania. It is expected to start operating in 2020.
Following the signing of the funding agreements, Europe's Climate Action and Energy Commissioner Miguel Arias Cañete said: "A solid, modern and strategic energy infrastructure is a crucial piece of our Energy Union, and the Commission is committed to strengthen it during its mandate. By supporting the gas interconnections between Poland and Lithuania and between Denmark and Poland, two projects under our EU list of Projects of Common Interest (PCIs), we are increasing diversification of sources and energy security for the region, whilst ending the Baltic Sea energy isolation. This is what European solidarity on energy is all about, one which provides real benefits and added value to our citizens."
Earlier this week, Industrial Info reported that the EU had provided a $200 million loan via the European Bank for Reconstruction & Development to upgrade and modernise Egypt's largest refinery at Suez, as part of its plan to create alternatives to Russian gas.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
