Poland: EC Confirms Funding for Szczecin-Gdansk Pipeline

EC Confirms Funding for Szczecin-Gdansk Pipeline

Recently, the European Commission confirmed its financial support to the construction project for the Szczecin-Gdansk gas pipeline implemented by GAZ-SYSTEM S.A. under the Operational Programme “Infrastructure and Environment” (OPI&E).

It is the first energy project in Poland that received favourable assessment from the European Commission.

Projects whose value is more than 50 million euros supported by the European Regional Development Fund and the Cohesion Fund are mandatorily subject to additional verification and approval at the European Commission level.

The construction of the Szczecin – Gdańsk gas pipeline has been granted such approval on 11 July 2012. Thus the European Commission has definitely confirmed EU funding for this investment project. This decision means also that the project meets a number of environmental, material and financial conditions.

“The European Commission has confirmed the grant of support from the “Infrastructure and Environment” Programme for two big energy projects – gas transmission pipeline Szczecin-Gdansk and the underground gas storage facility Kosakowo. Financial support to both projects is almost 340 million zlotys. The project being implemented by GAZ-SYSTEM S.A. will be the longest gas pipeline supported under the “Infrastructure and Environment” Programme. Thanks to the implementation of this project 265 km of gas transmission infrastructure will be built,” said Deputy Minister of Regional Development Adam Zdziebło.

“Due to its strategic nature, GAS-SYSTEM’s project is on the list of individual projects under OPI&E 2007-2013. It has been also covered by the monitoring of the state of preparedness and received consulting support under JASPERS, an initiative of European institutions. In addition, the construction of the gas pipeline is co-funded by the European Investment Bank. The European Commission’s decision confirms that the project is implemented in accordance with the EU standards and requirements of the European Investment Bank,” said Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A.

The construction of this high-pressure 265-km-long pipeline between Szczecin and Gdansk is currently one of the Company’s biggest investment project related to the Swinoujscie LNG terminal which is under construction. GAZ-SYSTEM’s project is supported by the EU under the OPE&I to the tune of 226.88 million zlotys. The total cost of the whole investment project is estimated at about 929.2 million zlotys.

The gas pipeline will be also very important to the region as a whole and in particular to Zachodniopomorskie, Pomorskie, Kujawsko-Pomorskie and Wielkopolskie Voivodeships, because it will ensure gas supplies that meet the needs of these areas. The project is implemented in four stages: Płoty-Karlino, Karlino-Koszalin, Koszalin-Słupsk and Słupsk-Wiczlino. The construction completion and launching of the pipeline are expected to happen in Q4 2013.

Currently, the project is in the first phase of construction work, after the completion of all tenders for works and delivery of materials.

[mappress]
LNG World News Staff, July 24, 2012; Image: GAZ-SYSTEM