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Non-Binding Open Season Procedure for Gas Interconnection Poland – Lithuania Project

The Gas Interconnection Poland–Lithuania (GIPL) project promoters, the Polish and Lithuanian gas transmission system operators, Gas Transmission Operator GAZ-SYSTEM S.A. and AB Amber Grid, have agreed to conduct the Non-Binding Open Season Procedure.

During this phase, the Polish and Lithuanian gas transmission system operators seek to estimate the market participants’ demand for the firm capacity at the Entry/Exit Point Poland – Lithuania of the GIPL in both directions of the gas flow.

The outcome of this phase of the Open Season Procedure will result in respective decisions on launching the Binding Open Season Procedure, where the binding orders on capacity booking will be collected.

The main aim of the Gas Interconnection Poland–Lithuania Open Season Procedure is to identify confirmed market interest in the long-term use of the pipeline capacity as well as to define the optimal way of financing of the project.

During the Non-Binding phase of the Open Season procedure, Market participants are requested to submit Capacity Request Form in line with the provisions of Rules of Non-binding phase of the Open Season procedure at the Entry/Exit Point Poland – Lithuania until 14.08.2015, 16:00 (CET) at the latest.

Background:

Since the beginning of the active cooperation between the Polish and Lithuanian TSOs regarding the joint development of the GIPL, a number of important decisions have been taken and a number of important actions have been carried out.

In 2013 the European Commission has already adopted a grant decision allocating to the GIPL project promoters’ 50% financial contribution for the implementation of the Environmental Impact Assessment as part of the Trans-European Energy Network (TEN-E) programme. In August 2014 the decision of the Agency for the Cooperation of Energy Regulators (ACER) on the cross-border cost allocation of the GIPL costs has been issued. During the same month Amber Grid and GAZ-SYSTEM S.A. submitted to the EU Innovation Network Executive Agency (INEA) joint applications for the co-financing of the GIPL project under the Connecting Europe Facility (CEF).

On 13 May 2015, AB Amber Grid and GAZ-SYSTEM S.A. signed a tripartite agreement with the INEA on the financial assistance of the EU for the Preparatory Works for the Poland-Lithuania Gas Interconnection up to building permission(s) obtainment. Under this agreement, the project was granted financial assistance of the EU of 10.6 million EUR under the CEF.

Poland and Lithuania on their respective territories are involved in the preparatory works necessary for a further progress of the GIPL project. The Environmental Impact Assessment is almost finished in Lithuania. In June 2015 GAZ-SYSTEM and in July 2015 AB Amber Grid have commenced GIPL design works.