Energy 26 September, 2017 10:00 am   
Editorial staff

Danø: Baltic Pipe is significant to Energinet’s strategy

– The Baltic Pipe Project and gas plays a significant role in Energinet’s new strategy. Danish studies have shown that gas is a key element in providing a cost effective path to a more sustainable energy system – said Jeppe Danø, market director at to during the Nafta-Gaz-Chemia 2017 conference. Realization of Baltic Pipe is entering a crucial phase. What is the timetable When may we expect the final investment decision?

Jeppe Danø: The deadline for the second phase of Open Season is planned for the 31st of October, the final investment decision will be made by the end of 2018 and the pipeline will be constructed in 2020-2022

The procedure of capacity reservation is going on. How many companies are interested in this project and do allocations?

This is confidential market information and we unfortunately do not share it.

Denmark had previously one source of gas. Now it has two sources from gas field on the North See and Germany. What are experiences of diversification from Danish perspective?

Denmark is benefitting from both having own supplies and links to the European market through Germany. The link to Germany is especially important in a situation where the Tyra platform is about to be reconstructed.

Energinet stressed that Baltic Pipe is a good solution for Denmark. What are the benefits from Danish perspective?

The Baltic Pipe Project is indeed a European project as indicated by the PCI status. From a Danish perspective, with a limited gas consumption, additional transit flows will provide economies of scale and help ensuring an affordable system for all users. Further it will provide an additional source of supply and provide the basis for a more competitive market.

In infrastructure projects, in the end questions about costs always appear. Which elements of Baltic Pipe will be financed by Energinet?

Energinet is responsible for the infrastructure from the Norwegian tie-in to the Eastern Danish shore. Costs for a Compressor Station in Denmark are expected to be shared between Energinet and Polish Gaz-System as indicated in the Open Season. The Compressor Station is necessary to transport gas to Polish consumers.

The third partner in this project is Norway. What is Norwegian stand on Baltic Pipe? Do they see benefits?

Energinet has as close cooperation with the Norwegian infrastructure operator Gassco that helps realize the project that provides Norwegian gas direct access to an interesting market area. As we cannot speak on behalf of Norwegian I suggest that you contact Norwegian players for detailed info.

Energenet  published the strategy for 2018-2020. What the is role of gas in yours and Danish government’s strategy?

It’s on this basis that the Danish government is developing an energy system that should ensure that Denmark in 2050 is producing more renewable energy than the total Danish energy consumption.

Interview by Bartłomiej Sawicki