Baltic Pipe gets green light from Poland and Denmark

Baltic Pipe gets green light from Poland and Denmark

The Polish and Danish gas transmission system operators: GAZ-SYSTEM and Energinet have both made positive investment decisions and agreed to implement the joint Baltic Pipe project. The final investment decisions were announced in Warsaw on 30th November 2018. The total cost of investment is estimated at EUR 1.6-2.2 bln, and is equally split between investors.

The bilateral positive investment decision means that Energinet and GAZ-SYSTEM have committed to construct overall 900 km long offshore and onshore gas pipeline. Baltic Pipe will be crossing three national territories - Denmark, Sweden and Poland and gas transmission will start in October 2022.

The pipeline will enable the supply of 10 bcm of natural gas from Norway through Denmark to Poland. Thanks to steadily developed North – South Gas corridor, particularly interconnections with Slovakia, Lithuania and Ukraine, gas can be further delivered allowing physical diversification of supply to Central and Eastern Europe thereby increasing resilience and security of region. Baltic Pipe has also reverse transmission capacity from Poland to Denmark and Sweden.

Baltic Pipe has a status of Project of Common Interest. So far financial assistance received by GAZ-SYSTEM in the area of trans-European transport and energy networks for the Baltic Pipe project amounts to €4.31 million.

The Baltic Pipe project consists of five main components:

  1. Gas pipeline on the seabed of the North Sea which will connect Norwegian deposits with the Danish transmission system;
  2. Expansion of the Danish transmission system which will increase gas transmission capacity and lower the average cost of the transfer;
  3. Modern compressor station in Denmark which will enable secure gas supply to Poland as well as via reverse flow to Denmark;
  4. Gas pipeline on the seabed of the Baltic Sea – the bidirectional connection of the Danish and Polish transmission systems diversifying the supply sources and directions;
  5. Expansion of the Polish transmission system constituting a further step to make Poland a regional gas hub which will reduce the risk of supply disruptions and boost the national economy.