Lithuanian natural gas transmission system operator Amber Grid intends to enter into a long-term loan agreement with the European Investment Bank (EIB) for financing the Gas Interconnection Poland–Lithuania (GIPL) project. The Board of Amber Grid has approved the basic conditions of the transaction. It is planned to sign a contract of up to EUR 65 million loan for a maximum term of 18 years. The Board’s decision will have to be approved by the general meeting of shareholders convened on 29 June.
‘Provided on extremely favourable terms for the European Investment Bank loan will allow to successfully continue implementation of the cross-border gas interconnection project between Lithuania and Poland, which is important not only for Lithuania, but also for the region as a whole,’ says Amber Grid CEO Nemunas Biknius.
The aim of the GIPL project is to integrate the Baltic gas market into the larger European Union gas market and to create a greater choice of gas supply sources. The project will also improve the security and reliability of gas supply. Recognised as an important European Union regional project, the GIPL is being financed by EU support funds, loans and the company’s own funds.
Construction of the GIPL, which route length in Lithuania is 165 km, began in January 2020. In the first five months, 23 per cent of the construction work for the entire project was completed. More than 100 km of steel pipes have already been delivered to Lithuania from Poland, 78 km of pipes have been welded, and dozens of kilometres of the connected pipeline have been buried in the trench. In June, the most complex phase of this year’s work will begin – horizontal directional drilling under the Neris, when a special pipe will be drawn along the bottom of the river.
The capacity of the gas pipeline connecting the Baltic region with Europe will be enough to satisfy nearly half of the annual demand of the Baltic States and Finland. The GIPL will make it possible to transport up to 27 terawatt-hours (TWh) of gas per year to the Baltic States, and up to 21 TWh per year to Poland.
