ENTSOG GRIP BEMIP 2014-2023 / Main Report

THE GAS INTERCONNECTION POLAND–LITHUANIA (GIPL)

GIPL is aimed at the establishing of a well-functioning new bidirectional inter­ connection between the Poland and Lithuania gas transmission systems in order to integrate the isolated gas markets of the Baltic states into the European gas market grids, by introducing an alternative gas supply route to the Baltic states. This interconnection will diversify the gas supply sources, increase the security of supply and would serve for the enhancement of competition in the gas market of the eastern Baltic region. Also, the GIPL project will provide the opportunity for the Polish market players of using the Latvian Inčukalns UGS facility. In October 2013 the GIPL project was included into the list of PCIs adopted by the EC. The GIPL project involves construction of DN700 pipeline from the CS in Rembelszczyzna (Poland) to the CS Jauniunai (Lithuania), the capacity en­ hancement of Rembelszczyzna compressor station and supporting infrastructure in Poland enabling higher imports of gas from variable sources – into Polish national gas transmission system. The total length of the DN700 pipeline is 534 km, i.e. 357 km on the Polish side and 177 km on the Lithuanian side. The initial GIPL capacity would enable to transport up to 73GWh / day of gas to the Baltic states. The expected load factor amounts to 20% of the maximum load. A gradual approach to the GIPL implementation is proposed with plans to commission the pipeline at the end of 2018 in case this pipeline will be provided with priority status both in Poland and Lithuania. Depending on market developments, there is a possibility to increase the maximum load up to 125GWh / day by installing addi- tional compressing capacity along the pipeline. Given large benefits of the GIPL project in terms of security of supply and market integration coupled with its lack of commercial viability for the project promoters, it is expected to receive up to 75% co-funding for eligible costs from CEF and the remaining part would be covered by the beneficiaries and also through cross- border cost allocation procedures as foreseen in TEN-E Regulation.

Image courtesy of GAZ-SYSTEM S.A.

Baltic Energy Market Interconnection Plan GRIP 2014–2023 | 71