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The Polish and Lithuanian gas transmission system operators submitted applications for EU support for the project Gas Interconnection Poland-Lithuania

On 19 August 2014, the Polish and Lithuanian natural gas transmission systems operators GAZ-SYSTEM S.A. and AB Amber Grid submitted joint applications to the Innovation & Networks Executive Agency (INEA) for the co-financing of the project Gas Interconnection Poland – Lithuania (GIPL) from Connecting Europe Facility  (CEF).

Two applications were submitted, including: one of them to receive EU financial support for territory planning and design stages, and another for construction works.

Following the provisions of the legal acts for CEF, the maximum amount for co-funding for territory planning and engineering stages is up to 50 per cent, meanwhile, the maximum support for construction works amounts to up 75 per cent of eligible costs. 

„GAZ-SYSTEM S.A.  together with our Lithuanian  partner  have decided to apply for the  financial support for the Gas Interconnection Poland – Lithuania in order to enhance the integration and the purchase possibilities’ offered to the market players in Lithuania and in the  all Baltic Region countries. GIPL project is aimed at strengthening the security of supply and ensuring full diversity of supply sources for the Baltic Region. The financial support granted for this project will help to realize the strategic goals of the energy policy of the European Union, including integration of the isolated gas markets of the Baltic States with the EU gas market.” – Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A. said.

„The submission of joint applications for the EU support is an important step into the implementation of the project aimed to integrate the isolated gas markets of the Baltic States into the EU gas market as well as to increase the security of natural gas supply and competitiveness of the regional market” - Saulius Bilys, General Manager of AB Amber Grid said.

The estimated value of the GIPL project amounts to EUR 558 million, including EUR 422 million in the territory of Poland, and EUR 136 million in the territory of Lithuania. 

On 11 August 2014, the European Agency for the Cooperation of Energy Regulators (ACER) took a decision on Cross-Border Cost Allocation of the GIPL costs among Poland, Lithuania, Latvia and Estonia. The ACER’s decision made available for the project promoters to apply for the financial support from CEF.

In October 2013, the European Commission approved the List of Projects of Common Interest in which the GIPL project was recognized as a project of regional importance.

Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company of the Polish economy, which is in charge of natural gas transmission and the management of the most important gas pipelines in Poland. Till 2014, GAZ-SYSTEM S.A. will construct over 1000 km of new transmission gas pipelines. The most important ones will be constructed in North-West and Central Poland. The expansion of the gas pipeline system may be an important element of the North-South Gas Corridor, which integrates natural gas markets in CE countries. Investments carried out by GAZ-SYSTEM S.A. and a reverse service on the Jamal gas pipeline have enabled to improve the energy security of Poland by increasing technical capacities of import from a direction other than the East up to almost 70% of total import (till 2011: it was 9%).

AB Amber Grid is the operator of Lithuania’s natural gas transmission system. 96.58 per cent of AB Amber Grid shares are owned by UAB EPSO-G (controlled by the Ministry of Energy of the Republic of Lithuania)

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