EU financial support for the integration of Polish transmission system with the Czech Republic and Denmark
The interconnectors Poland – the Czech Republic and Poland – Denmark (Baltic Pipe) have received financial support under the Connecting Europe Facility. The European Commission’s proposal to grant financial aid was accepted by the Member States on 14 July 2015.
Within the first competition, announced in 2015 by the European Commission, support was provided to two Projects of Common Interest that are developed by GAZ-SYSTEM S.A. in cooperation with the Czech and Danish transmission system operators. The aim of the two projects is to diversify and improve natural gas supply security. Moreover, they will help in building the regional gas market through the integration of the states in the region with the EU market.
The Poland - Czech Republic interconnector (Libhost - Hat - Kędzierzyn-Koźle) received financial support for construction work amounting to EUR 62.6 mln, which will be divided between GAZ-SYSTEM S.A. and NET4GAS s.r.o. Some time earlier the project received additional funding for design work in the amount of EUR 1.5 mln.
The Baltic Pipe, which is to link the natural gas transmission systems of Poland and Denmark, thus completing the process of gas market integration in the Baltic area, was granted EUR 0,4 mln as additional funding for preparatory work. These resources will be spent on the development of the required preparatory documentation by GAZ-SYSTEM S.A. and the Danish transmission system operator – Energinet.dk.
In this year’s first competition, the infrastructure projects that GAZ SYSTEM S.A. has been involved in received the support in the amount corresponding to nearly 30% of the total funding earmarked for gas and electrical energy investments in the European Union. The total resources distributed under the “Connecting Europe Facility” in the first competition were approx. EUR 149 million. GAZ-SYSTEM S.A. has also applied for financial support for other investments in transmission infrastructure development; the resources may be awarded under the second “Connecting Europe Facility” competition which is to be settled in 2015.
FINANCING OF PROJECTS BY GAZ SYSTEM S.A. UNDER THE CONNECTING EUROPE FACILITY
| Task | Gas interconnection Poland - Czech Republic | Gas interconnection Poland - Slovakia | Gas interconnection Poland - Lithuania (GIPL) | Gas interconnection Poland - Denmark (Baltic Pipe) |
|---|---|---|---|---|
| Preparatory works | EUR 1,5 mln | EUR 4,6 mln | EUR 10,6 mln | EUR 0,4 mln |
| Construction works | EUR 62,6 mln | EUR 295 mln |
More information about the Poland – Czech Republic project can be found here.
More information about the Poland – Denmark project can be found here.
Project of Common Interest status
By the decision of the European Commission made in October 2013 the interconnector with the Czech Republic and Denmark was given the status of the Project of Common Interest. The PCI status means that the project has been covered with best practices under the process of issuing permits to the extent stipulated in Regulation (EU) 347/2013. More information about the PCI status can be found here.
Development Plan 2015-2023
The construction of new gas connections with EU Member States is part of the next stage in the development of the Polish transmission system. The formation of new gas pipelines under the North-South Gas Corridor supported by the European Union and the construction of the connection with Lithuania and Denmark will make a major contribution to the growth of the European transmission system. To this end GAZ-SYSTEM S.A. is planning to build in 2015-2023 a total of approx. 2,000 km of new gas pipelines in western, southern and eastern parts of Poland.
