Baltic States – CIS, Energy, EU – Baltic States, Gas, Lithuania

The European Commission would be possibly willing to fund the project, the article informs.

Jan Chadam, the President of Gaz-System said to the paper that signing of the documents is quite possible this summer, informs LETA/ELTA.

"First of all, we would need to perform a preliminary feasibility study and business analysis. We applied for funding from the European Commission," Chadam said to the paper.

According to the paper, the planned pipeline, as outlined, could initially transport from Poland to Lithuania approximately two billion cubic meters a year. The gas is scheduled be transported through the Liquefied Gas terminal in Swinoujscie. This about three quarters of all gas, consumed in Lithuania in last year. The data shows that consumption of natural gas is decreasing. Lithuania consumed 2.7 billion cubic meters of gas in 2009, 3.2 bln cubic meters in 2008 and 3.5 bln cubic meters in 2007, the National Control Commission for Prices and Energy Commission reported.

The paper writes that Lithuanians and Poles can expect some funding to come from the European Union. The construction of the pipeline on Polish territory would cost from 700 million to nearly 1.1 billion zloty.

The pipeline is planned at about 360 kilometres on the Poland's territory. The president Chad said that the cost of laying the pipeline is estimated to be from two to three million Polish zloty (from 485.000 to 728.000 euros).

"We cannot bear such a high cost, especially having in mind that our company is responsible for other strategic projects to improve the security of gas supplies in the country", said the head of Gaz-System.

As reported, a four-day energy spat between Russia and Belarus closed on Thursday as Russia resumed gas flows to Belarus, which secured gas supplies to Lithuania.

Natural gas imports into Lithuania have been restored in full. Following Tuesday's cut, Lukashenko ordered a shutdown of Russian gas transit deliveries to Europe in retaliation, raising fears in the European Union, where member states Lithuania, Germany and Poland take Russian gas delivered through Belarus.