Baltic Pipe

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Baltic Pipe
Location
Country Denmark, Poland
From Rødvig, Denmark
Passes through Baltic Sea
To Niechorze, Poland
General information
Type natural gas
Operator Energinet.dk, Gaz-System
Technical information
Length 230 km (140 mi)
Maximum discharge 5 billion cubic meter

The Baltic Pipe is a proposed natural gas pipeline between Denmark and Poland. When completed, it will transport natural gas from Norway to Poland via Denmark.

History[edit]

The project started in 2001, when Danish oil and gas company DONG and Polish oil and gas company PGNiG signed an agreement on construction of the pipeline and Danish gas supply to Poland.[1] It was agreed to establish a pipeline consortium with two-third shares belonging to DONG and one-third to PGNiG with possible Statoil participation.[2] However, shortly afterward the project was suspended, because of economic feasibility.

The project was revived in 2007. On 2 May 2007, PGNiG and Energinet.dk, a Danish transmission system operator, which was taken over Danish natural gas transmission network from DONG, signed an agreement to explore the possibility of construction the Baltic Pipe.[3] In August 2008, the Polish Government replaced PGNiG with the fully state-owned pipeline operator Gaz-System as the project partner.[4]

On 18 May 2009, the European Commission launched a call for proposals for grants in the framework of the European Energy Programme for Recovery. It proposed to allocate about €150 million for implementation of Skanled and Baltic Pipe projects.[5] However, on 16 June 2009 Gaz-System suspended the implementation of the project due to suspension of the Skanled project and lack of natural gas demand in Poland.[6] The project was reactivated by Poland in February 2010 after reviewing the project, and Gaz-System is expecting to launch construction of the pipeline in the second half of 2011.[7]

Aim[edit]

Originally, the Baltic Pipe project was linked to the Skanled project. Poland wanted to import Norwegian gas via Skanled, through the Danish natural gas system and the Baltic Pipe. After suspension of the Skanled project, Poland sees the pipeline as an export route for surplus gas from its planned Polskie LNG terminal at Świnoujście.[7] At the same time Denmark is looking at importing Russian gas via Poland and the Baltic Pipe.[3]

Technical features[edit]

The 230-kilometre (140 mi) submarine pipeline will connect Rødvig in Denmark and Niechorze in Poland. The capacity and diameter of the pipeline has not yet been determined. However, in 2001 it was discussed that the pipeline should transport at least 5 billion cubic meter (bcm) of gas per year. The cost of building the pipeline was estimated at €335-350 million, depending on the diameter of the pipe.[2] It is planned to be built allowing gas flows in both directions.[3]

The European Commission has provided €3.2 million for technical design of the pipeline.[8]

References[edit]

  1. ^ "Scandinavian Gas Headed for Poland". Warsaw Voice. 2001-07-08. Retrieved 2007-09-15. 
  2. ^ a b "One Step Closer to Diversification". Warsaw Voice. 2001-06-24. Retrieved 2007-09-15. 
  3. ^ a b c Bente T. Valentin (2007-05-02). "Denmark and Poland look into gas pipeline" (Press release). Energinet.dk. Retrieved 2007-09-15. 
  4. ^ "PGNiG eyes Norway booster". Upstream Online. NHST Media Group. 2008-08-28. Retrieved 2009-10-14. 
  5. ^ "The Commission calls for proposals for €4 billion worth of energy investments" (Press release). European Commission. 2009-05-18. Retrieved 2010-02-21. 
  6. ^ Marcin Szczepański (2009-12-23). "BBN o wstrzymaniu prac nad projektem Baltic Pipe" [BNS to suspend work on the Baltic Pipe project] (in Polish). wnp.pl. Retrieved 2010-02-21. 
  7. ^ a b Marcin Szczepański (2010-02-11). "Gaz-System: prace nad Baltic Pipe mogą ruszyć w drugiej połowie 2011 roku" [Gaz-System: Work on the Baltic Pipe can be launched in the second half of 2011] (in Polish). wnp.pl. Retrieved 2010-02-21. 
  8. ^ "Gaz-System pracuje nad projektem technicznym Baltic Pipe" [Gaz-System is working on the technical design Baltic Pipe]. Polish Press Agency (in Polish). wnp.pl. 2009-09-24. Retrieved 2010-02-21.