EU to fund GIPL preparatory work

Amber Grid of Lithuania and Poland’s Gaz-System, signed a tripartite agreement with the EU’s Innovation Network Executive Agency on the financial assistance of the EU to the project “Preparatory Works for the Poland-Lithuania Gas Interconnection up to building permission(s) obtainment.”

Under this agreement, the project was granted financial assistance of the EU of EUR 10.6 million under the Connecting Europe Facility, Amber Grid said in a statement.

The preparatory works of the project were granted the maximum intensity of the EU financial assistance for studies, 50 percent. Of the total amount, AB Amber Grid was granted EUR 2.5 million, and Gaz-System S.A. was granted EUR 8.1 million. Total estimated value of the spatial planning and engineering design works of the Poland-Lithuania gas interconnection (GIPL) project amounts to EUR  21.2 million.

The GIPL project aims at the integration of the Baltic States gas markets into a single gas market of the European Union, at the diversification of gas supply sources and at the enhancement of the security of gas supplies.

Preparatory works for the implementation of the  GIPL project were started back in 2009. The year 2011 saw the preparation of the GIPL business environment analysis and the year 2013 marked the preparation of the feasibility study of the GIPL project. The GIPL project’s environmental impact assessment procedures in the Lithuanian territory began back in 2013 and are scheduled for completion in 2015.

On 5 November 2014, the GIPL project was granted by the Government of the Republic of Lithuania the status of a project of national economic significance.

The prospective gas transmission pipeline (diameter 700 mm) will connect gas compressor stations of the two countries: the Lithuanian gas compressor station of Jauniūnai and the Polish one of Rembelszczyzna. Total length of the prospective gas pipeline is 534 km, of which about 177 km fall within the territory of Lithuania.

Estimated value of the GIPL project is EUR 558 million, of which in the territory of Poland EUR 422 million and in the territory of Lithuania EUR 136 million. Launch into operation of the GIPL is scheduled for 2020.

Image: Amber Grid