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 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

Amber Grid signed the agreement with a Polish company Izostal which is the successful tenderer of the public tender procedure for the purchase of pipes for the GIPL interconnection


Today Lithuanian natural gas transmission system operator Amber Grid entered into the agreement with a Polish company Izostal S.A. for the purchase of steel pipes to be used for the construction of the international gas pipeline interconnection GIPL. The value of the contract is EUR 26.4 million (exclusive of VAT). The decision to enter into the agreement was approved by the extraordinary general meeting of Amber Grid shareholders that was held on the 23rd of July.

 

Today Lithuanian natural gas transmission system operator Amber Grid entered into the agreement with a Polish company Izostal S.A. for the purchase of steel pipes to be used for the construction of the international gas pipeline interconnection GIPL. The value of the contract is EUR 26.4 million (exclusive of VAT). The decision to enter into the agreement was approved by the extraordinary general meeting of Amber Grid shareholders that was held on the 23rd of July.

“I am delighted that in implementing the GIPL project we will work with a reliable Polish company Izostal that has a considerable experience in implementing gas pipeline projects across Europe and beyond. This will be the largest recent project of gas infrastructure in the Baltic states. We hope to see the first pipes in the route of the GIPL gas pipeline already this autumn”, – said Saulius Bilys, the CEO of Amber Grid.

“We are very satisfied that we have signed a contract for the delivery of pipes for the interconnector Poland-Lithuania. As a Polish manufacturer, we undertake the obligation to be an example and a leader on high standards in the implementation of orders for Amber Grid. Both the terms of the contract and the technical requirements for deliveries are very strict, it shows Amber Grid's extensive experience in choosing the supplier. The conclusion of the contract is the crowning achievement of our long-term commercial relationship“, – said Marek Mazurek, the CEO of Izostal.

Procurement procedures for GIPL project were launched in 2018 summer. Four companies submitted final offers for the project pipeline competition. The winner of the international procurement will be responsible for the supply of steel pipes for the 165 km long gas pipeline in the territory of Lithuania. The 700 mm diameter pipeline will be constructed from the Jauniūnai Compressor Station in the Širvintos district to the Lithuanian-Polish border in the Lazdijai district.

The results of the second public procurement of the GIPL project related to the procurement of construction works will soon be announced. After signing both pipe and construction works agreements, GIPL pipeline construction works in the territory of Lithuania will start. The GIPL pipeline is expected to be completed by the end of 2021. According to the project, the length of the pipeline will be 508 km, of which 165 km will lie in the territory of Lithuania. The total investments of the GIPL project is about EUR 500 million. The investment on the Lithuanian side will amount to EUR 136 million.

The newly constructed connection of the gas pipelines will allow creating a capacity for transporting up to 27 terawatt-hours (TWh) of natural gas per year to the direction of the Baltic States, and 21 TWh per year to the direction of Poland, and the gas markets of the Baltic states will become a part of the EU single gas market.

Amber Grid implements a project of common interest of the European Union “Gas Interconnection Poland–Lithuania“ (GIPL) together with the Polish gas transmission system operator GAZ-SYSTEM S.A. Based on the decision of the Agency for the Cooperation of Energy Regulators (ACER) for Cross-Border Allocation of the Project Costs, in addition to the EU financial support, the construction works of the GIPL project will be financed by Lithuania, Latvia and Estonia. These three countries will cover a part of the GIPL infrastructure costs in the territory of Poland.

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The Board of Amber Grid offers shareholders to conclude the agreement for the purchase of pipes for the GIPL with Polish Izostal


The Board of Amber Grid made a decision on the conclusion of the agreement for the purchase of pipes for the construction of GIPL with Poland’s Izostal S.A., company. The contract estimated EUR 26.4 million (excluding VAT) with Izostal S.A. will be signed subject to the approval of Extraordinary General Meeting of Shareholders to be held on 23 July.

 

 

The Board of Lithuanian natural gas transmission system operator Amber Grid made a decision on the conclusion of the agreement for the purchase of pipes for the construction of GIPL with Poland’s Izostal S.A., company.  The contract estimated EUR 26.4 million (excluding VAT) with Izostal S.A. will be signed subject to the approval of Extraordinary General Meeting of Shareholders to be held on 23 July.
 
‘We have chosen one of the two major GIPL project partners who will produce and supply the pipelines for the new gas interconnection with Poland. We are pleased that the international competition has attracted strong companies. The interconnection project is relevant not only to Lithuania and Poland, but also to all Baltic States, so it is important for us to have reliable partners. We are looking forward to announce the winner of the GIPL construction works’, - says Amber Grid CEO Saulius Bilys.
 
Procurement procedures for GIPL project were launched in 2018 summer. Four companies submitted final offers for the project pipeline competition. The winner of the international procurement will be responsible for the supply of steel pipes for the 165 km long gas pipeline in the territory of Lithuania. The 700 mm diameter pipeline will be constructed from the Jauniūnai Compressor Station in the Sirvintos district to the Lithuanian-Polish border in the Lazdijai district.
 
The results of the second public procurement of the GIPL project related to the procurement of construction works will soon be announced. After signing both pipe and construction works agreements, GIPL pipeline construction works in the territory of Lithuania will start. The GIPL pipeline is expected to be completed by the end of 2021. According to the project, the length of the pipeline will be 508 km, of which 165 km will lie in the territory of Lithuania. The total value of the GIPL project is EUR 500 million. The investment on the Lithuanian side will amount to EUR 136 million.
 
The construction of the gas interconnection will create capacity to transport up to 27 terawatt-hours (TWh) of natural gas per year in the direction of the Baltic States, up to 21 TWh per year in Poland. The Baltic gas markets will become part of the overall EU gas market.
 
Amber Grid is implementing a project of common interest of the European Union “Gas pipeline connection between Poland and Lithuania” (GIPL) together with the Polish gas transmission operator GAZ-SYSTEM S.A.

 

 

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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

Public procurement of pipelines for the construction of part of the GIPL project in Lithuania announced

Public procurement of construction works of part of the GIPL project in Lithuania announced
Lithuanian and Polish transmission system operators signed a network connection agreement, which confirmed the final decision to invest in the GIPL project and started the pipeline construction phase
Savanorių pr. 28, LT-03116 Vilnius