Baltic, Banks, EU – Baltic States, Financial Services, Gas Market , Good for Business, Latvia

SEB banka has signed a EUR 16 mln guarantee agreement with natural gas transmission and storage company Conexus Baltic Grid (Conexus), so the company could co-finance construction of the Lithuanian-Polish gas interconnection.

The bank points out that the gas pipeline connecting Lithuania and Poland will be the first gas interconnection between the eastern part of the Baltic Sea region and continental Europe. Therefore, after the project is implemented, all countries involved in the project will have access to the European Union gas network, which will ensure that natural gas users are able to use various alternative natural gas sources.

"The Polish-Lithuanian interconnection will not only connect the Baltic and Finnish natural gas transmission systems with continental European natural gas infrastructure, creating alternative sources of natural gas supply, but also make the Incukalns underground gas storage facility available to Polish traders, which will facilitate efficient use of this unique asset," said Conexus board member Martins Gode.

The total length of the pipeline connecting Poland and Lithuania is planned to be 534 kilometers, and the total cost of the project is estimated at EUR 558 mln, of which EUR 29.4 mln will be invested by Conexus, EUR 422 mln by the Polish gas system operator Gaz-System and the remaining amount by the Lithuanian natural gas transmission system operator Amber Grid.