Amber Grid, the gas transmission system operator, has filed a lawsuit against Alvora, the contractor for the construction of the GIPL gas pipeline, for damages for non-performance of the GIPL construction contract. The damages amount to EUR 10.6 million. As part of the amount (EUR 5.8 million) has already been received from the bank on the basis of the guarantee obligations, the court is asked to award the cost of rectifying the defective work, which amounts to EUR 4.8 million.

These funds are necessary to remedy the defects that occurred during the contracting of the project, including the replacement of parts of the pipeline and related technological processes.

The court accepted Amber Grid's claim and granted interim measures for the attachment of movable and immovable property and, failing that, cash in the amount of the claim (EUR 4.8 million) against Alvora.

As a result, Amber Grid is working on a detailed replacement plan and preparing for an international public tender to select a contractor.

It was previously reported that Amber Grid had discovered that some components of the GIPL pipeline did not have the appropriate certificates. According to the company, the contractor breached the contract by installing non-compliant fittings. 

The safety of the GIPL pipeline has been confirmed by tests, internal diagnostics and additional expertise carried out on the entire pipeline during construction and operation. Measurements of the chemical composition of the pipeline components, the quality and hardness of the steel, radiography of the welds and the wall thickness of the pipeline components all met and exceeded the technical requirements of the project. The tests confirm that the pipeline is safe to operate. Until the valves are replaced, the GIPL will be operated with more frequent preventive maintenance of certain valves and associated infrastructure than required by law.

The strategically important GIPL project has made it possible to secure energy independence for both Lithuania and Europe. Amber Grid implemented the project within the planned time frame and budget. The pipeline connecting Lithuania and Poland provides an alternative source of natural gas and further strengthens energy independence. From the start of GIPL's operations until April this year, more than 16 TWh of gas has been transported through the pipeline.