Gaz-System, Amber Grid look for EU support

On 19 August 2014, the Polish and Lithuanian natural gas transmission systems operators Gaz-System and Amber Grid submitted joint applications to the Innovation & Networks Executive Agency (INEA) for the co-financing of the project Gas Interconnection Poland – Lithuania (GIPL) from Connecting Europe Facility (CEF).

Two applications were submitted, one of them to receive EU financial support for territory planning and design stages, and another for construction works.

Following the provisions of the legal acts for CEF, the maximum amount for co-funding for territory planning and engineering stages is up to 50 per cent, meanwhile, the maximum support for construction works amounts to up 75 per cent of eligible costs.

„Gaz-System S.A. together with our Lithuanian partner have decided to apply for the financial support for the Gas Interconnection Poland – Lithuania in order to enhance the integration and the purchase possibilities’ offered to the market players in Lithuania and in the all Baltic Region countries. GIPL project is aimed at strengthening the security of supply and ensuring full diversity of supply sources for the Baltic Region. The financial support granted for this project will help realize the strategic goals of the energy policy of the European Union, including integration of the isolated gas markets of the Baltic States with the EU gas market,” Jan Chadam, President of the Management Board of Gaz-System S.A. said.

„The submission of joint applications for the EU support is an important step towards the implementation of the project aimed to integrate the isolated gas markets of the Baltic States into the EU gas market as well as to increase the security of natural gas supply and competitiveness of the regional market,“ Saulius Bilys, General Manager of AB Amber Grid said.

The estimated value of the GIPL project amounts to EUR 558 million, including EUR 422 million in the territory of Poland, and EUR 136 million in the territory of Lithuania.

On 11 August 2014, the European Agency for the Cooperation of Energy Regulators (ACER) took a decision on Cross-Border Cost Allocation of the GIPL costs among Poland, Lithuania, Latvia and Estonia. The ACER’s decision made available for the project promoters to apply for the financial support from CEF.

In October 2013, the European Commission approved the List of Projects of Common Interest in which the GIPL project was recognized as a project of regional importance.

Press Release, August 21, 2014; Image: Gaz-System S.A.