Lithuanian and Polish gas transmission system operators (TSOs) AB Amber Grid and GAZ-SYSTEM S.A. have signed a grid Connection Agreement on Thursday to invest into Gas Interconnection Poland-Lithuania (GIPL) thus starting a construction stage of the project.

‘Following intense and productive negotiations we are now entering a phase of the implementation of the project. GIPL grid is one of the most important projects in the country’ energy sector as it paves the way to integrate the gas transmission systems of Lithuania as well as the Baltic States into the common European gas market. It also secures another alternative gas supply source, economic benefit and security of energy supply to all partners involved. Moreover, the new interconnection with Poland, our strategic partner, creates new possibilities for the operation of LNG terminal and option for even more competitive gas prices in our market’, says Žygimantas Vaičiūnas, Lithuanian Minister of Energy.

‘GIPL project is a perfect example of European solidarity and joint, targeted and active efforts of parties involved. The project brought to life will offer the users of Baltic States and Finland a bigger choice of natural gas supply and prices, also opening new perspectives for natural gas market participants’, says Saulius Bilys, CEO of Amber Grid.

After signing this agreement international tenders will be announced for contractors and purchase of pipes. March 2019 is provisioned as a date to start pipeline construction works in the territory of Lithuania, after international procurement tenders are over.

GIPL pipeline is planned to be completed and put into operation in December 2021. The approximate projected length of the pipeline is around 500 km, while 165 km running in the territory of Lithuania.

When the pipeline is constructed, new capacities will be created allowing to transport gas up to 27 TWh a year to Baltic States and up to 22 TWh a year to Poland, making the gas market of Baltic States a part of common EU gas market.