Poland: EC Confirms Funding for More Pipelines

On 24 July, the European Commission issued a decision on the approval of co-funding in the amount of approx. 175 mln PLN for the project of constructing the Gustorzyn-Odolanów gas pipeline. The next decision of the Commission, issued on 26 July, approved the award of aid for the construction of the Szczecin-Lwówek gas pipeline, amounting to 159 mln PLN.

These decisions signify that the projects fulfilled by the GAZ-SYSTEM S.A. Company have satisfactorily met a series of conditions concerning environmental, material and property as well as financial aspects and are fully compliant with the priorities of the Operational Programme “Infrastructure and Environment” (OPIE).

The high pressure gas pipeline on the Gustorzyn-Odolanów route with a length of 168 km which is being constructed is located in the territory of the Greater Poland and Kuyavian-Pomeranian Voivodship. The scope of the gas pipeline project encompasses two stages of construction: Gustorzyn-Turek (83 km), and Turek-Odolanów (85 km). The investment will enable connecting to and cooperating with the Mogilno Cavern Underground Gas Storeroom (CUGS) as well as the seasonal storeroom – the Wierzchowice Underground Gas Storeroom (UGS). Once the project has been completed, it will provide greater gas transmission possibilities in both directions depending on the system demands, as well as enable gas off-take from both CUGS Mogilno as well as UGS Wierzchowice.

The Company has obtained all the necessary administrative decisions enabling the construction work to commence. At present, the investment is in its first stage of construction and all the tender proceedings for the performance of the project and supplies of materials have been completed. The estimated value of the investment is 638 mln PLN. The completion of the construction works and the start-up is planned for mid 2014.

The Szczecin-Lwówek gas pipeline, which is approx. 188 km in length, will traverse the territory of the Western Pomeranian Voivodship, the Lubusz Voivodship and the Greater Poland Voivodship. It will be carried out in two stages on the section starting from the Gas Compressor Station in Goleniów to Gorzów Wielkopolski (118 km), and from Gorzów Wielkopolski to Lwówek (70 km). The development of the transmission network in northwestern Poland is one of the priorities

of gas pipeline system investments that are being performed by GAZ-SYSTEM S.A. in view of the terminal in Świnoujście for the off-take of liquefied natural gas terminal (LNG), which is currently under construction.

GAZ-SYSTEM S.A. has already obtained all the necessary administrative decisions enabling commencement with construction work. The contractor performing the gas pipeline has been selected and investor supervision contracts for the gas pipeline construction have been signed. The estimated value of the investment is 647 mln PLN. The completion of the construction phase

and the start up is expected to take place in February 2014.

In July 2012, the European Commission also confirmed the award of co-funding for the Szczecin-Gdańsk gas pipeline construction project in the amount of 226.9 mln PLN.

1 Polish zloty = 0.299312 U.S. dollars

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LNG World News Staff, August 01, 2012; Image: GAZ-SYSTEM