Polish Briefing 21 December, 2017 9:00 am   
Editorial staff

Polish Briefing: EU grant agreement for the Poland-Slovakia gas interconnection

What goes on in Poland on the 21st of December.

EU grant agreement for the Poland-Slovakia gas interconnection

Innovation and Networks Executive Agency (INEA), Gaz-System and Eustream have signed the Grant Agreement for the construction works for the PCI Project, the Poland-Slovakia Gas Interconnection.

European Union’s Innovation and Networks Executive Agency (INEA), Gaz-System S.A. and Eustream have signed on 18 December 2017 the Grant Agreement for the construction works for the planned Poland-Slovakia Gas Interconnection – a new cross-border transmission pipeline, of which approx. 59 km is located in Poland and 106 km in Slovakia.

The above Grant Agreement allows both, Polish and Slovak gas transmission system operators to receive EU financial support under the Connecting Europe Facility (CEF) funding instrument in the amount of approx. 107.7 million € in total (55.2 million € for Eustream and 52.5 million € for Gaz-System). The Poland-Slovakia Gas Interconnection received one of the biggest supports out of all the 18 projects selected in the second 2016 CEF Energy Call for Proposals by the European Commission in 2017 for financing from the EU funds.

“The received financial support under the CEF funding instrument is underlining the great importance of the Poland-Slovakia Gas Interconnection for the achievement of the European Union energy policy objectives” said Tomasz Stępień, President of the Management Board, Gaz-System.

“Signing of the Grant Agreement for the construction works constitutes a sound basis for further realization of the Project” said Rastislav Ňukovič, the CEO of Eustream.

The implementation of the Poland-Slovak gas interconnection, which constitutes the crucial part of the North South Gas Interconnections in Central Eastern and South Eastern Europe (NSI East Gas), will contribute to the enhancement of the regional security of supply and integration of the gas markets.

Agreements with contractors for the design of Polish gas compressor stations have been signed

Gaz-System has signed three agreements with the Biuro Studiów i Projektów Gazownictwa Gazoprojekt S.A. for the development of design documentation for gas compressor stations to be constructed in Poland under the Baltic Pipe project.

Gazoprojekt has been selected in a tender procedure – the bidders could submit partial tender offers separately for each of the three facilities. In each case, the bids submitted by Gazoprojekt S.A. proved to be the best. According to the agreements, the contractor will be obliged to obtain all necessary arrangements, approvals, opinions, permits and decisions. Furthermore, the contractor will exercise the author’s supervision over the investment project implementation.

The venture provides for an expansion of gas compressor stations in Goleniów and Odolanów, along with the system hub and ancillary infrastructure. In addition, the gas transmission hub will be expanded and a new gas compressor station will be built in Gustorzyn. These investment projects are crucial for the effective operation of the Polish transmission system, considering greater volumes of natural gas derived from diversified gas sources, expanded LNG Terminal in Świnoujście, and the construction of the offshore gas pipeline between Denmark and Poland.