The information hereunder was posted by AB Lietuvos Dujos, which carried out natural gas transmission activities before the establishment of AB Amber Grid.

GAZ–SYSTEM S.A. jointly with AB Lietuvos Dujos signed an agreement with a winner of the tender ILF Consulting Engineers Polska Sp. z o.o Company for the performance of a Feasibility Study of the interconnection between Poland and Lithuania (GIPL).

The feasibility study should be available by the first quarter of 2013 and will be the basis for the further actions regarding implementation of this project.

Analytical works (business case analysis and the feasibility study) on the gas interconnection Poland-Lithuania are being co-financed by the European Commission within the TransEuropean Energy Network Programme (TEN-E).

Last year, both companies performed business case analysis of the project and according to initial estimations the gas pipeline connecting Poland and Lithuania would be 562 km long, with a capacity enabling transporting of up to 2.3 billion m3 of natural gas annually to the Baltic States with possibility of further expansion of the capacity up to 4.5 billion m3 per year.

“The Management Boards of GAZ-SYSTEM S.A. and Lietuvos Dujos have decided to continue works on this strategic interconnection. We are convinced that this project is of a great importance for the energy security and market integration of the Baltic States. In comparison with other diversification projects in the region, the interconnection between Poland in Lithuania provides a broader range of benefits, enabling access both to EU gas and global LNG markets and through bi-directional flow capabilities a higher security of supply for the connected countries,” Joachim Hockertz, Deputy General Manager – Director of Commerce of AB Lietuvos Dujos said.

“The advantages of the construction of the GIPL are above all greater security and diversification of gas supplies in the Baltic State region. We are also considering this investment in the context of including Lithuania in the North-South Gas Corridor. These values may be very precious for the market and consumers of the Baltic States. GAZ-SYSTEM S.A. expects that a significant part of the investment will be financed from EU funds because this is a priority project in the scope of eliminating energy islands in Europe,” Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A, said.

The gas interconnection Poland-Lithuania is an element of the so-called Baltic Energy Market Interconnection Plan (BEMIP). BEMIP constitutes one of the priorities for the development of the energy infrastructure marked out by the European Union within the Second Strategic Energy Review (SER2). Its purpose is to integrate the gas and energy markets in the Baltic Sea region as well as put an end to the isolation of Baltic countries from the European Energy market.