Energy, EU – Baltic States, Financial Services, Gas, Legislation

Photo: lrp.lt

The agreement was signed by the representatives of the Lithuanian and Polish gas transmission system operators – Amber Grid (Lithuania) and Gaz-System (Poland) – and the Innovations & Networks Executive Agency responsible for financing strategic EU projects.

The signing ceremony was attended by European Commission President Jean-Claude Juncker, Lithuanian President Dalia Grybauskaite, Polish Prime Minister Ewa Kopacz, Latvian Prime Minister Laimdota Straujuma and Estonian Prime Minister Taavi Roivas.

The GIPL project aims at the integration of the Baltic region gas markets into a single EU gas market, at the diversification of gas supply sources and at the enhancement of the security of gas supplies. GIPL will bring socio-economic benefits to the three Baltic States and Finland (for the latter once the gas interconnector between Finland and Estonia is constructed).

The project is being implemented jointly with the Polish gas transmission system operator – Gaz-System S.A. The preparatory works for the GIPL project were started in 2009, a GIPL business environment analysis was prepared in 2013, and a GIPL feasibility study was completed in 2013.

700 mm wide gas pipeline will connect Lithuania's Jauniunai and Poland's Rembelszczyzna compressor stations. The pipeline will be 534 km long, 177 km of which will be laid in Lithuania. The cost of the project is EUR 558 million – EUR 422 million for Poland and EUR 136 million for Lithuania. The estimated value of the GIPL project is EUR 558 million including. GIPL operation launch is scheduled for the end of 2019.

It is one of the energy infrastructure projects that benefits of the status of Project of Common European Interest. Projects of Common Interest are critical for completing the European internal energy market and for the attainment of the Juncker Commission priority to establish an Energy Union to secure, affordable and sustainable energy.