The Innovation and Networks Executive Agency (INEA) transferred to AB Amber Grid the first advance payment of the EU support under the Connecting Europe Facility (CEF) to finance the construction works of Gas Interconnection Poland-Lithuania (GIPL) in the territory of the Republic of Lithuania. In accordance with the EU financial assistance agreement concluded among AB Amber Grid, the Polish gas transmission system operator, GAZ-SYSTEM SA , and the INEA, the advance payment accounts for 30 percent of the financial assistance allocated for the current year, 2016, and amounts to almost EUR 1.2 million.

The Gas Interconnection Poland-Lithuania (GIPL) project is a part of the European Union’s project of common-interest (PCI), which is implemented by AB Amber Grid together with the Polish transmission system operators GAZ-SYSTEM S.A. The purpose of the GIPL project is to integrate the gas markets of the Baltic States into a single EU gas market, to diversify the gas supply sources, and to improve the gas supply safety.

“The Gas Interconnection Poland-Lithuania Project is being implemented on schedule. Currently, tenders are underway for the selection of contractors to carry out the construction works and for the selection of suppliers of pipes. The European Union’s financial support is an important element in the implementation of the project, which showcases the European-wide importance of this project and which significantly reduces the impact on gas transportation prices, “said the Energy Vice-minister, Dr Aleksandras Spruogis.

The total projected length of GIPL is 522 km, the 700 mm diameter gas transmission pipeline will connect gas compressor stations in Jauniūnai (Lithuania) and Rembelszczyzna (near Warsaw in Poland). The projected length of GIPL is approximately 357 km will be in the territory of Poland, and  approximately 165 km will be in the territory of Lithuania.

Following the decision by the European Commission (21 November 2014) the GIPL project was granted the financial assistance under the Connecting Europe Facility (CEF): EUR 10.6 million for the preparatory works and EUR 295.4 million for the construction works. In addition to EU financial support under the CEF, part of investment costs of the GIPL in Poland will be covered as a cross-border compensation from Lithuania, Latvia and Estonia.

In 2015 the procedures for the Environmental Impact Assessment were finished and the company started territorial planning and design works. It is expected to receive the permission documents for the construction works in September 2016.

The construction GIPL pipeline in the territory of Lithuania is expected to be completed by July 2019.