Natural Gas Transmission System Operator
AB Amber Grid Completes Construction of Gas Transmission Pipeline of National Importance, Jurbarkas–Klaipeda


AB Amber Grid announces that 15 November 2013 marks the completion of the implementation of a Project provided for by the National Energy (Energy Independence) Strategy. The Project was mainly aimed at the enhancement of safety and reliability of Lithuania’s natural gas transmission system, at the enhancement of the gas system throughput capacity in Western Lithuania and at facilitating connection of the prospective Klaipeda Liquefied Natural Gas Terminal (LNGT) to the Lithuanian gas system. Today, on 15 November 2013, a number of state officials, top executives of AB Amber Grid and AB Lietuvos Dujos and a number of invited representatives of the key contractors involved in the Project implementation cut the symbolic ribbon symbolizing the completion of the implementation of the Construction Project (see pictures attached).

The Project for the Construction of the Jurbarkas–Klaipeda Gas Transmission Pipeline, constituting an integral part of Lithuania’s National Energy Strategy, was implemented in three stages. Stage 1 (back in 2007) saw the construction of the Sakiai–Jurbarkas Pipeline section; Stage 2 (in 2012) saw the completion of the construction of the Pipeline section to Taurage, and November of 2013 saw the completion of the final Stage 3, the construction of the Taurage–Klaipeda section. The Project also included the construction of the Klaipeda M&R Station No 2. Until August of 2013, the entity in charge of the Project implementation was AB Lietuvos Dujos. The Project was completed by the newly established TSO company, AB Amber Grid.

‘When we assumed the functions of Lithuania’s natural gas transmission system operator, it was necessary to ensure smooth operations of the Gas Transmission System, to properly complete the gas system development projects of national importance that had been already started and to launch new ones. The newly constructed the Jurbarkas–Klaipeda gas transmission pipeline will contribute to the enhancement of the reliability of the entire gas system and will ensure stability of its operations. The works for the construction of the Pipeline and the M&R Station were completed nearly two months ahead of schedule. The credit for the rapid pace of the construction works and for the professionalism goes to the contractors, so I would like to thank them,’ said the CEO of AB Amber Grid Saulius Bilys.

Total Project investments: almost LTL 200 million*; Stages 2 and 3 of the Project have secured the co-funding of LTL 77.1 million by the EU Structural Funds. Length of the pipeline: 165 km (diameter 400 mm). As part of the Project, two new M&R Stations were constructed: one in Jurbarkas (in 2007) and one in Klaipeda (in 2013). Also, an LNG Terminal Facility connector unit for connection with the gas transmission system was installed.

As soon as this winter the new gas transmission pipeline will be put into operation and start gas transmission to customers. Later in 2014, after the putting into operation of the prospective LNG Terminal Facility, the new gas transmission pipeline will be also put to another use – it will be used for the transmission of gas supplies imported to Lithuania by sea.

More detailed information on the Jurbarkas–Klaipeda gas transmission pipeline, which received the EU co-funding

Length of the Jurbarkas–Klaipeda gas transmission pipeline: 137 km; design pressure 54 bar. The Pipeline was for the most part constructed from PE-coated steel pipes with diameter 400 mm. In 29 places the gas transmission pipeline route crosses roads of national importance, in 45 places - gravel roads of local importance, in 3 instances - roads of regional importance and in 2 instances it crosses railways. Twenty-six of the aforesaid road and railway-crossings were constructed using the horizontal directional drilling (HDD) technology. The longest continuous HDD section of almost 1 km was constructed under the Jura River bed. The Pipeline is equipped with 11 Line Block Valve sites.

More detailed information on the Klaipeda M&R Station No. 2
The Klaipeda M&R Station No. 2 was designed to ensure reliable supplies of natural gas to the city of Klaipeda. Capacity: 50,000 Nm3/h; gas outlet pressure: 16 bar.

The Klaipeda M&R Station No. 2 site is equipped with a connector unit to connect the LNG Terminal Facility to the new Pipeline, two Intelligent Pig Receiving Facilities, etc. technological equipment. Contractor: UAB Alvora, acting under a partnership agreement with AB Kauno Dujotiekio Statyba and UAB Siauliu Dujotiekio Statyba.

The processes of the Klaipeda M&R Station No. 2: gas cleaning, heating, pressure reduction, metering and odorization. Manufactured by the German Company RMG.

About AB Amber Grid
AB Amber Grid was established on 11 June 2013 pursuant to a resolution adopted by a General Meeting of Shareholders of AB Lietuvos Dujos in implementation of requirements of legal acts of the Republic of Lithuania providing for the unbundling of the natural gas transmission activity from other activities. By the aforesaid resolution the General Meeting of Shareholders of AB Lietuvos Dujos approved the Terms and Conditions of the Spin-off providing for a spin-off from AB Lietuvos Dujos (continuing its activities) of a Transmission System Operator company on the basis of assets, rights and obligations attributed to the gas transmission activity. AB Amber Grid started its full scale activity on 1 August 2013.

According to data of 30 September 2013, AB Amber Grid was a party to contracts with 86 natural gas transmission system users, including the largest Lithuanian industrial companies and electricity and heat production companies. The Natural Gas Transmission System users also include natural gas distribution system operators and natural gas supply companies, which supply natural gas to households and other small natural gas consumers.

The composition of the Company’s shareholders as of 30 September 2013: E.ON Ruhrgas International GmbH (Germany) – 38.9%, OAO Gazprom (Russia) – 37.1%, the Ministry of Energy of the Republic of Lithuania – 17.7%, and small shareholders – 6.3% of shares.

Since 1 August 2013 AB Amber Grid shares have been listed on the Secondary List of the NASDAQ OMX Vilnius Stock Exchange.

*LTL 3.45 = EUR 1

Please find attached pictures from the Opening Ceremony site.

To top