Baltics, Poland ink GIPL cost-sharing accord
The Baltic states and Poland have signed a cost-sharing agreement as Lithuania and Poland eye the start of the construction of GIPL, a gas pipeline that will connect the two countries' gas networks. The three states do not have a direct gas connector with continental Europe, relying on Russian pipeline gas and LNG.
Based on the 2014 decision of the European Union's Agency for the Co-operation of Energy Regulators (Acer), the Baltic states will cover €85.8mn of Poland's cost. Lithuania will pay €54.9mn, half of which will come from the EU; Latvia will pay €29.4mn, half of which again will be covered by the EU; and Estonia will pay €1.5mn. Owing to the trivial amount the EU will not contribute to this last payment.
“The amounts paid by the Baltic states are subject to change amid the actual scope of works locally,” Mindaugas Linkaitis, spokesman for Amber Grid, Lithuania’s gas transmission company, told NGW.
The final agreement before the start of the construction was signed by the countries' gas transmission companies: Lithuania's Amber Grid, Latvia's Conexus Baltic Grid, Estonia's Elering and Poland's Gaz-System.
"This agreement means the preparation stage is over and the construction phase begins. We plan to sign the agreement this week, on Thursday, during the energy infrastructure forum in Copenhagen," Danas Janulionis, head of strategic planning and communication at Amber Grid, said, according to Lithuanian media.
The GIPL construction in Poland and Lithuania is set to kick off next year. In Lithuania, the GIPL will stretch for 177 km. Previous calculations suggest the project's overall value stands at €558mn, of which Lithuania's section will cost €136mn. The project's implementation has been postponed by two and a half years and now it is due for completion by the end of 2021.
The expected capacity of the pipeline is 2.3bn m³/yr but with the possibility of expansion to 4.5bn m³/yr. Contractor and pipe acquisition tenders will be called in the coming days.
"This agreement enables us to call purchase tenders. The Polish side, as far as I know, will organise their tenders in several stages, and they plan to do it for at least one stage soon. We are also waiting for the signing of the agreement and its coming into force, and tenders will be calls afterwards," Janulionis said.