GAS INTERCONNECTION POLAND–LITHUANIA (GIPL)


This is a natural gas infrastructure that will connect Polish and Lithuanian as well as Baltic and Finnish natural gas transmission systems with the European Union ( EU) system. Natural gas will be transmitted in both directions. The GIPL gas pipeline will run from Jauniūnai Gas Compressor Station (GCS) in Širvintos district to the Hołowczyce GCS on the Polish side. It is planned that the connection between Poland and Lithuania will be established until the end of 2021. GIPL project has been recognised by the European Commission as a Project of Common Interest (PCI).

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Investments

The preliminary GIPL project value is EUR 500 million. Investments to infrastructure in the territory of Lithuania will amount to EUR 136 million. EU financial assistance has been provided to prepare Business Case Analysis and  Feasibility Study as well as the preparation of the Environmental Impact Assessment Report of the GIPL Project under the European Commission's Trans-European Energy Networks (TEN-E) program, which made 50% of eligible costs. Following the European Commission's decision of 2014, up to EUR 10.6 million was allocated for preparatory works of the GIPL project and up to EUR 295.4 million for construction works under the Connecting Europe Facility (CEF). In addition to EU financial support, the construction of the GIPL project will be funded by Lithuania, Latvia and Estonia by a cross-border cost allocation decision covering part of the GIPL infrastructure costs in the territory of Poland - a total of EUR 54.9 million. The rest of the project is funded by the project promoters.

Benefits of the Project

Will integrate gas markets of the Baltic States and Finland into a common EU gas market

Will diversify access to alternative gas supply sources, routes, counterparties and increase of competition

Will increase security and reliability of gas supply – both in terms of additional interconnection capacity and possibility to apply solidarity measures between Member States

Will enable more flexible and efficient use of LNG terminals and transmission infrastructure in Poland and Lithuania

Will enhance liquidity both in Polish and Baltic gas areas and strengthen their regional role

News

With 60 per cent of the construction work complete, nearly half of the GIPL pipeline is filled with gas


Lithuania is making progress in building the Gas Interconnection Poland-Lithuania (GIPL), with 60 per cent of the construction work already complete. The achievement was strengthened by the 72-km section of the new gas pipeline that was filled with gas in the last days of this year. 

 
Lithuania is making progress in building the Gas Interconnection Poland-Lithuania (GIPL), with 60 per cent of the construction work already complete. The achievement was strengthened by the 72-km section of the new gas pipeline that was filled with gas in the last days of this year. Natural gas was put into the section of the gas pipeline from the starting point of the GIPL gas interconnection in Širvintos district to Alytus, where the pipeline start-up adjustment works are being carried out. 
 
According to Nemunas Biknius, CEO of Amber Grid, which is the company implementing the Gas Interconnection Poland-Lithuania project, proper project planning and cooperation with the contractor, ensuring project quality and time management, made it possible to complete 60 per cent of the GIPL construction work in just one year. 
“The most important GIPL work planned for 2021 is to complete construction of the gas pipeline to the Lithuanian-Polish border, where we will install a gas pressure regulating and metering station. In parallel with the continuation of the infrastructure works, we are talking to market participants about the conditions for using the gas pipeline. The new gas pipeline will bring significant economic benefits to market participants in the Baltic States, Finland and Poland. We can sense a lot of interest, and we are planning on offering the GIPL pipeline capacity to the market by the beginning of 2022,” says Mr Biknius.
Since January 2020, when the GIPL project was launched, 125 km of pipeline have been welded. The gas pipeline has already been laid in the districts of Vilnius, Širvintos, Elektrėnai, Kaišiadorys, Prienai and Birštonas, and in part of Alytus district. Over the course of 2020, the most complex gas interconnection construction works in terms of technology and work organisation were carried out – crossing Lithuania’s largest rivers, installing the GIPL starting point next to the Jauniūnai gas compressor station, and connecting the completed section of the GIPL to the existing gas transmission system. All of the steel pipes required for the 165-km GIPL gas pipeline route have already been delivered to Lithuania, so any further restrictions due to the pandemic will not affect the project. 
 
During construction of the gas pipeline, large-scale archaeological works were also organised in 2020, where almost all of Lithuania’s active archaeologists explored the gas pipeline route that runs through half of the country’s territory, searching for and capturing historical finds.
 
The GIPL will make it possible to transport up to 27 TWh of gas per year to the Baltic States, and up to 21 TWh per year to Poland. Following the implementation of this project, the Baltic gas markets will become part of the common EU natural gas market, and also part of the biomethane and hydrogen market in the future.
 

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The Summary of the Non-Binding Market Survey Concerning the GIPL is Published by Gas Transmission Operators GAZ-SYSTEM S.A. and Amber Grid


Gas Transmission Operators GAZ-SYSTEM S.A. and AB Amber Grid (TSOs) have published the summary of the Non-Binding Market Survey responses concerning the Gas Interconnection Poland – Lithuania (GIPL). 

Gas Transmission Operators GAZ-SYSTEM S.A. and Amber Grid (TSOs) have published the summary of the Non-Binding Market Survey responses concerning the Gas Interconnection Poland – Lithuania (GIPL). The summary of responses for the GIPL Non-Binding Market Survey, as well as TSOs answers to the questions provided by the Respondents of the survey you may find here.
 
The non-binding Market Survey procedure had been conducted from 4 November to 7 December, 2020 by both TSOs searching for the market views on the development of the services for new transmission capacity in the GIPL. Nine respondents had provided answers, which were elaborated and contained a number of interesting ideas and proposals.
 
During the non-binding Market Survey, a webinar for the market participants was also organized on 25 November. During the webinar, the progress of GIPL implementation and objectives of the market survey were presented and questions from market participants were answered. The webinar was attended by more than 60 participants from various European countries, including existing and potential market participants, as well as representatives from the regulatory authorities, ministries and other important stakeholders. The unexpectedly large interest and provided feedback showed that the GIPL project has a very promising commercial potential for a regional gas market, but there is also an evident need for designing optimal access conditions to GIPL entry/exit point, which will support the role of GIPL in the development of a competitive energy market in the region and the process of regional gas market integration.
 
GAZ-SYSTEM S.A. and Amber Grid appreciate all market participants and stakeholders very much participating in the survey and webinar for their time and efforts put into responding on the addressed topics. Both TSOs believe that this valuable contribution will prove to be very helpful within our further works, analyses and dialogue with the crucial stakeholders in the process of determining the rules of access to GIPL IP, in particular, the National Regulatory Authorities. More detailed proposals will be provided for public consultation in due course upon their preparation. 
 
GAZ-SYSTEM plays a strategic role in the Polish economy. We are responsible for natural gas transmission and operate the most important gas pipelines in Poland. As part of the 2015-2025 investment programme, GAZ-SYSTEM plans to build over 2000 km of new gas pipelines in western, southern and eastern parts of Poland. Further development of the national transmission network, including the construction of new gas pipelines making part of the North-South Gas Corridor, as well as the construction of interconnections with the neighbouring countries, will strengthen Poland’s energy security and make an important contribution to the development of the European transmission system. 
The Company is implementing one of the most important infrastructural projects in Poland – the Baltic Pipe project, which consists in the construction of a bidirectional offshore gas pipeline connecting Poland and Denmark and the expansion of the local transmission network. 
GAZ-SYSTEM also owns Polskie LNG, the operator of the President Lech Kaczyński's LNG Terminal in Świnoujście.
 
Amber Grid, Lithuanian gas transmission system operator, ensures reliable and safe gas transmission by high pressure pipelines to the system users. We are responsible for operating, maintaining and developing the natural gas infrastructure of Lithuania which contains of more than 2100 km of pipes and 2 gas compressor stations. Well-developed Lithuanian gas infrastructure serves as regional hub for the gas transmission towards North in Latvia direction. We are implementing a strategic energy project GIPL, a natural gas infrastructure that will connect Polish and Lithuanian as well as Baltic and Finnish gas transmission systems with the European Union. The GIPL interconnection is designed to enhance gas market of the region and to deliver value for the market players and involved countries. Amber Grid shares are listed on the Baltic Secondary List of the NASDAQ Vilnius Stock Exchange. The controlling stake of Amber Grid is owned by the holding company EPSO-G, whose 100% of the shares are owned by the Ministry of Energy of the Republic of Lithuania.
 

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Progress

Following the Construction Contract which entered into force on 30/12/2019, the construction of the GIPL gas interconnection began immediately. We invite you to get acquainted with the progress of this construction work.

JANUARY

On 02/01/2020, the beginning of the construction work was announced. The pipelines' route was marked, a searched for explosives in the pipeline construction area began, archaeological exploration and other works necessary for the start of construction began. For more information.
 
On 13/01/2020, steel pipes from Poland started to be transported to the construction site. For more information.
 
 
During January:
  • Marked 80 km of pipeline’s route.
  • Transported 14 km of pipes.
  • 5 km of pipes were put along the pipeline’s route.
  • 1 km of pipes were welded.
  • Orders were placed for foreign manufacturers to produce taps, the launching and receiving chambers for the monitoring device and other materials required for the pipeline construction that need more time to manufacture.
FEBRUARY 
 
During the first six weeks of the GIPL gas pipeline construction works, the first kilometres of the pipeline route were welded into filaments. More information.
 
Amber Grid has paid out about EUR 1.3 million in compensation to land owners for GIPL gas pipeline route which will run through the plots of land owned by them. More information
 
The results of the tender for the construction works of the GIPL gas pipeline, in which a pipeline construction company Alvora was the successful tenderer, remain unchanged. A part of the legal action of a company MT Group, who lost the tender for the construction works, whereby the company requested to declare the decision of the Procurement Commission of Amber Grid on the successful tenderer of the tender for the construction works as unlawful, was rejected by the court. More information
 
 
From the beginning of the works in January to the end of February:
  • 102 km of the route were marked
  • 44 km of pipes were delivered 
  • 28 km of pipes were laid along the route
  • 18 km of piping were welded into filaments
  • 9 km long forest stretch in the GIPL route was cut down 
  • 6.3 km of the welds of the welded gas pipeline were X-rayed. 
MARCH
 
After the announcement of the quarantine in Lithuania for the threat of spread of COVID-19 pandemic, the GIPL gas pipeline connection project is being implemented without disruption. Active work with contractors allowed ensuring stable work in all teams. The project is progressing faster than planned – by the end of March, 12% of the entire pipeline construction works were completed. 
 
The planned archaeological research began in parallel with the construction of GIPL gas connection. The historical heritage that has survived into the present day will be explored throughout the territory of 165 km long pipeline route. More information
 
On the occasion of March 11, of the 30th anniversary of the restoration of Lithuania's independence, the Lithuanian tricolour flag with an area of 300 square meters was raised above the gas connection with Western Europe. More information
 
 
From the beginning of the works in January to the end of March:
  • 68 km of steel pipes were delivered to Lithuania 
  • 54 km of pipes were laid along the route
  • 44 km of piping were welded into filaments
  • 19 km long forest stretch in the GIPL route was cut down
  • 22 km of the welds of the welded gas pipeline were X-rayed
  • 5 km of the route were surveyed for explosives
  • archaeological explorations and detailed research are carried out. 
APRIL
 
In April, the quarantine that is in force in Lithuania due to COVID-19 virus pandemic and operating restrictions did not affect the construction of GIPL gas connection between Lithuania and Poland. Works are progressing as planned and even faster. As planned, the connection will be finished by the end of 2021, and two-thirds of construction works are scheduled to be completed this year. More information
 
The lowering of the welded and inspected parts of piping into the excavated trenches has been started. 
 
The preparation for the most complicated works in this year - horizontal directional drilling (HDD) under the river Neris - is nearing the end.
 
The German partners are scheduled to start work in June. At Kernavė on one side of the river Neris and at Kazokiškės on its other side, work sites are already ready, works of welding of a special pipe, that will be pushed across under the bottom of the river Neris at a depth of 20 meters are nearing the end.
 
 
From the beginning of the works in January to the end of April:
  • 85 km of pipes were delivered 
  • 71 km of pipes were laid along the route
  • 64 km of piping were welded into filaments
  • trenches were excavated and 6 km of piping were laid
  • 50 km of the welds of the welded gas pipeline were X-rayed
  • archaeological explorations and detailed research were carried out.
MAY
 
The implementation of the GIPL interconnection project is progressing faster than planned. Already implemented 23 percent. of the GIPL project. By the end of May, more than 100 km of steel pipes from 165 km had been delivered to Lithuania.
 
At the request of Amber Grid, the Government granted permission to foreign specialists performing horizontal directional drilling (HDD) work to enter Lithuania. Representatives of the German company LMR Drilling will start the complex construction of the pipeline under the Neris River in June.
 
At the initiative of Lithuanian and Polish gas transmission system operators, independent experts have started preparing a study to assess how to expand the commercial use of the GIPL connection in Europe, and the GIPL gas connection would create maximum economic benefits for Lithuanian, Polish and other European Union consumers. More information
 
 
From the beginning of the works in January to the end of May:
  • 103 km of pipes were delivered 
  • 87 km of pipes were laid along the route
  • 78 km of piping were welded into filaments
  • trenches were excavated and 17 km of piping were laid
  • buried 14 km of trenches
  • 66 km of the welds of the welded gas pipeline were X-rayed
  • archaeological explorations and detailed research were carried out. 
JUNE
 
Amber Grid and The European Investment Bank recently has signed a €65 million loan agreement to finance the construction of the Lithuanian section of the planned gas interconnection between Poland and Lithuania.  The 18-year loan agreement is concluded on extremely favorable terms. More information
 
An important milestone of GIPL project - horizontal directional drilling (HDD) under the second biggest river of Lithuania Neris has been successfully completed. More information
 
 
From the beginning of the works in January to the end of June:
  • 118 km of pipes were delivered 
  • 98 km of pipes were laid along the route
  • 88 km of piping were welded into filaments
  • trenches were excavated and 28 km of piping were laid
  • buried 21 km of trenches
  • 80 km of the welds of the welded gas pipeline were X-rayed
  • archaeological explorations and detailed research were carried out 
  • HDD drilling was carried out during the construction of the pipeline under Neris river.
JULY
 
Horizontal directional drilling (HDD) works under the Nemunas river have started. Pilot drilling of the first thread was performed. Two pipes, about 700 meters long, will be laid under the largest river at a depth of 20 meters. In parallel, both pipes are laid side by side to ensure a secure gas supply. More information
 
  • 125 km of pipes were delivered 
  • 105 km of pipes were laid along the route
  • 99 km of piping were welded into filaments
  • trenches were excavated and 52 km of piping were laid
  • buried 42 km of trenches
  • 90 km of the welds of the welded gas pipeline were X-rayed
  • archaeological explorations and detailed research were carried out 
  • Pilot drilling of the first thread of the pipeline under the Nemunas was performed

AUGUST

 
One of the most difficult stages of construction of GIPL gas pipeline has been accomplished, i.e. two 750 m length threads of the gas transmission systems were constructed under the river Nemunas in the gas pipeline near Alytus by employing an environmentally sustainable horizontal directional drilling technology without delays. More information.

From the commencement of the works in January to the end of August:
  • 138 km pipes were constructed 
  • 111 km pipes were laid along the pipeline
  • 103 km pipeline was welded into threads
  • trenches were excavated and 69 km pipeline was laid in the trenches
  • 61 km trenches were covered 
  • 97 km welds of the welded pipeline were scanned
  • archaeological surveying and detailed explorations were carried
  • HDD drilling was carried out by constructing a gas pipeline under the river Nemunas

SEPTEMBER

The progress of implementation of the GIPL project was presented to the representatives of the embassies of the countries of the region from Poland, the Baltic States, Finland and the USA in the presence of the Ministry of Energy Žygimantas Vaičiūnas. For more information, please visit here.

Works of preparation for another significant stage of the GIPL project were started, i.e. connection of the part of the GIPL pipeline which has already been constructed to the gas transmission system of Lithuania. For more information, please visit here.

An essential element of filling the gas pipeline with gas, i.e. tap assembly platform, at the starting point of the GIPL connection, near Jauniūnai gas compressor station in Širvintos District is reconstructed, assembling of other tap assembly platforms of the new gas pipeline was started. In total, a total of 40 tap assemblies were mounted in the gas pipeline.
 
Construction of a gas metering and pressure regulation station was started in Lazdijai District, near Lithuania-Poland border.
 
45 per cent of all construction works of the project were carried out during the period of nine months. It is planned to carry out 60 per cent of the GIPL construction works till the end of 2020. 109 km GIPL gas pipeline from Jauniūnai, Širvintos District, to Alytus District, has already been constructed. The total length of the gas pipeline is 165 km.
 
 
From the commencement of the works in January to the end of September:
 
  • 144 km pipes were constructed 
  • 115 km pipes were laid along the pipeline
  • 109 km pipeline was welded into threads
  • trenches were excavated and 83 km pipeline was laid in the trenches
  • 79 km trenches were covered 
  • 105 km welds of the welded pipeline were scanned
  • archaeological surveying and detailed explorations were carried
  • HDD drilling was carried out by constructing a gas pipeline under the rivers Neris and Nemunas
  • works of connection of GIPL gas pipeline to the gas transmission system were started
  • mounting of tap assembly platforms was started
  • gas metering and pressure regulation station construction works were started
     
OCTOBER
 
A quality check of the first part of the GIPL gas connection was carried out: the carried out hydraulic tests suggest that the gas pipeline sustains a load of maximum pressure provided for in the design. The operating pressure of the GIPL gas pipeline will be 54 bars. For more information, please visit here.
 
After carrying out the test and mounting of the tap platform, a part of the GIPL was connected to the existing gas transmission system of Lithuania. For more information, please visit here.
 
 
The first 35 km of the gas pipeline, i.e. from Jauniūnai gas compressor station in Širvintos District, to Elektrėnai, have already been filled in with gas, the starting-arrangement works are carried out. It is planned to fill in 72 km GIPL gas pipeline section with gas till the end of this year.
 
All steel pipes necessary for the GIPL gas pipeline were delivered to Lithuania from the Polish manufacturer Izostal.
 
 
The GIPL project partners Amber Grid and GAZ-SYSTEM SA started a market research aimed at finding out the market demand for transmission services for new GIPL gas connection capacity. For more details, please see here
 
From the commencement of the works in January to the end of October:
  • 168 km pipes were constructed 
  • 119 km pipes were laid along the pipeline
  • 111 km pipeline was welded into threads
  • trenches were excavated and 94 km pipeline was laid in the trenches
  • 89 km trenches were covered 
  • 109 km welds of the welded pipeline were scanned
  • archaeological surveying and detailed explorations were carried
  • HDD drilling was carried out by constructing a gas pipeline under the rivers Neris and Nemunas
  • essential works of connection of GIPL gas pipeline to the gas transmission system were carried out
  • tap assembly platforms were mounted
  • gas metering and pressure regulation station construction works were started
  • hydraulic tests of 38.5 km pipeline were carried out
 
 

 

 

 

 

Project promoters

The project is carried out by Lithuanian and Polish natural gas transmission system operators Amber Grid and GAZ-SYSTEM. The European Commission has recognized the GIPL project as a major infrastructure gas supply security contributing significantly to the EU's energy security.
 
About AB „Amber Grid“
 
AB Amber Grid is Lithuanian natural gas transmission system operator. The company is responsible for reliable and safe transmission of gas (it’s transportation by high-pressure
pipelines) to users of the system, as well as for the operation, maintenance and development of the transmission system.
 
About GAZ-SYSTEM
 
Gas transmission system operator GAZ-SYSTEM is responsible for the transmission of  natural gas and management of transmission network in Poland. It is also the owner of the company  Polskie LNG, the operator of the LNG terminal in Świnoujście.

 

Technical data

Gas pipeline length

Total gas pipeline lenght both in Lithuania and Poland

508 km

Gas pipeline lenght in Poland

343 km

Gas pipeline lenght in Lithuania

165 km

Interconnection capacities

PL->LT  27 TWh/year

(2.4 bcm/year)

LT->PL  21 TWh/year

(1.9 bcm/year)

 

PL->LT  74 GWh/day

(6.6 mcm/day)

LT->PL  58 GWh/day

(5.2 mcm/day)

 

Design pressure

in Poland

8.4 MPa

in Lithuania

5.4 MPa

Timeline of the Project

The pipeline is built and operating

Welding of the pipes began

First pipes from Poland started to be transported to the construction site

GIPL Construction Contract entered into force and the construction work on the GIPL pipeline began

Savanorių pr. 28, LT-03116 Vilnius