Gaz-System Secures EIB Loan to Finance New Gas Pipeline
Gaz-System of Poland signed an agreement with the European Investment Bank (EIB) for the financing of the Lwówek – Odolanów gas pipeline being currently under design.
The financing will consist in a project loan to be taken out by Gaz-System up to the maximum amount of PLN 410 million, which may be drawn in full or in multiple tranches, each of at least PLN 50 million. The loan will be available for 22 months of signing the agreement. The maximum loan maturity is 20 years.
The construction of the Lwówek – Odolanów gas pipeline is a crucial element for enhancing the security, reliability and flexibility of the operation of the gas transmission system in Poland and the neighbouring countries, especially in the context of the planned Central European North-South Gas Corridor. The pipeline will offer the possibility of transporting increased gas volumes domestically, including the transportation from the LNG terminal in Świnoujście, through the Polish transmission system, to the border with the Czech Republic, Slovakia and Ukraine. For this reason, the project received the PCI (Project of Common Interest) status granted in October 2013 by the European Commission.
The Lwówek – Odolanów gas pipeline to be built by 2017 will have a diameter of 1000 mm and a length of approx. 170 km. The value of the entire project is estimated at PLN 850 million. So far, at the design stage of the Lwówek – Odolanów pipeline, Gaz-System raised co-financing under the Operational Programme Infrastructure and Environment in the amount of PLN 3.76 million.
The first agreement between Gaz-System and EIB for the value of PLN 600 million was signed on 14 July 2011 and concerned the construction of Rembelszczyzna-Gustorzyn and Szczecin-Gdańsk gas pipelines. On 14 December 2011, the European Investment Bank extended another loan worth PLN 600 million to the company, to finance the LNG terminal in Świnoujście.
The total value of the loans granted by EIB to Gaz-System for the financing of strategic investments to date has reached PLN 900 million.
1 Polish zloty = 0.327751 U.S. dollars