Amber Grid Signed the GIPL Gas Pipeline Works Contract

On 23 December, Lithuanian natural gas transmission system operator Amber Grid entered into the contract with a consortium of companies consisting of UAB Alvora and Šiaulių dujotiekio statyba, which submitted the most economically advantageous tender in the public tendering procedure for the construction works of GIPL gas interconnection between Poland and Lithuania. The signed transaction with the value of EUR 79.85 million (exclusive of VAT) will allow works of this project, which is important for the region as a whole, to be started as soon as January.

The contractor will begin the works in January from the starting point of the GIPL gas pipeline which is situated in Širvintos district, adjacent to Jauniūnai Compressor Station. In two years, 165 km long underground gas pipeline will be constructed from Širvintos to the Lithuanian-Polish border in Lazdijai district, also a border gas metering station will be equipped. In Poland, the pipeline will extend over a distance of more than 340 kilometres. At the beginning of September, Polish gas transmission system operator Gaz-System, which is the partner of the GIPL connection, launched the public tendering procedure for the contract works of part of the pipeline in the Polish territory. The company has also secured for itself pipe supply contracts.

The total value of the GIPL project is around EUR 500 million, investment on the Lithuanian side will amount up to EUR 112 million. More than 60 per cent of the project funding was allocated by the European Commission. Latvian and Estonian gas transmission system operators will also contribute to the funding of the project.

Construction of the GIPL gas pipeline is planned to be completed and the connection is expected to be operational at the end of 2021. The newly constructed gas pipeline connection will create capacity for transporting up to 27 terawatt-hours (TWh) of natural gas per year in the direction of the Baltic States, and up to 21 TWh per year in the direction of Poland, and the Baltic gas markets will become part of the single EU gas market.

Amber Grid implements the EU project of common interest “Gas interconnection Poland–Lithuania (GIPL)” along with Polish gas transmission system operator Gaz-System.

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