OREANDA-NEWS. August 04, 2015. The Gas Interconnection Poland–Lithuania (GIPL) project promoters, the Polish and Lithuanian gas transmission system operators, Gas Transmission Operator GAZ-SYSTEM S.A. and AB Amber Grid, have agreed to conduct the Non-Binding Open Season Procedure.

During this phase, the Polish and Lithuanian gas transmission system operators seek to estimate the market participants’ demand for the firm capacity at the Entry/Exit Point Poland–Lithuania of the GIPL in both directions of the gas flow.

The outcome of this phase of the Open Season Procedure will result in respective decisions on launching the Binding Open Season Procedure, where the binding orders on capacity booking will be collected.

The main aim of the Gas Interconnection Poland–Lithuania Open Season Procedure is to identify confirmed market interest in the long-term use of the pipeline capacity as well as to define the optimal way of financing of the project.

Direct link to the documentation of Non-Binding phase of the Open Season procedure:

GAZ-SYSTEM website:

http://en.gaz-system.pl/strefa-klienta/konsultacje-z-rynkiem/aktualne-konsultacje/open-season-gipl/

 AMBER GRID website:

 https://www.ambergrid.lt/en/transportation-services/capacity-information/osp

During the Non-Binding phase of the Open Season procedure, Market participants are requested to submit Capacity Request Form in line with the provisions of Rules of Non-binding phase of the Open Season procedure at the Entry/Exit Point Poland–Lithuania until 14.08.2015, 16:00 (CET) at the latest.

Background:

Since the beginning of the active cooperation between the Polish and Lithuanian TSOs regarding the joint development of the GIPL, a number of important decisions have been taken and a number of important actions have been carried out.

In 2013 the European Commission has already adopted a grant decision allocating to the GIPL project promoters’ 50% financial contribution for the implementation of the Environmental Impact Assessment as part of the Trans-European Energy Network (TEN-E) programme. In August 2014 the decision of the Agency for the Cooperation of Energy Regulators (ACER) on the cross-border cost allocation of the GIPL costs has been issued. During the same month Amber Grid and GAZ-SYSTEM S.A. submitted to the EU Innovation Network Executive Agency (INEA) joint applications for the co-financing of the GIPL project under the Connecting Europe Facility (CEF).

On 13 May 2015, AB Amber Grid and GAZ-SYSTEM S.A. signed a tripartite agreement with the INEA on the financial assistance of the EU for the Preparatory Works for the Poland-Lithuania Gas Interconnection up to building permission(s) obtainment. Under this agreement, the project was granted financial assistance of the EU of 10.6 million EUR under the CEF.

Poland and Lithuania on their respective territories are involved in the preparatory works necessary for a further progress of the GIPL project. The Environmental Impact Assessment is almost finished in Lithuania. In June 2015 GAZ-SYSTEM and in July 2015 AB Amber Grid have commenced GIPL design works.

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The Gas Interconnection Poland–Lithuania (GIPL) is crucial for the integration of European gas transmission system, establishing effectively functioning competitive gas market in North-East Europe, eliminating so called “energy island” - the region not integrated with common EU gas market (the Baltic States).

The construction of the GIPL would establish a firm, bi-directional capacity between the Polish and Lithuanian transmission systems. 

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AB Amber Grid is the operator of Lithuanian natural gas transmission system and is in charge of transmission of natural gas (transportation of natural gas through high pressure pipelines) to system users and operation, maintenance and development of natural gas transmission system.

The gas system operated by AB Amber Grid is comprised of high-pressure gas pipelines (2,000 km), 2 gas compressor stations, 2 cross-border gas metering stations and 67 domestic exit points, cathodic protection installations (protecting gas pipelines from corrosion), as well as data transmission and telecommunications systems. Customers of AB Amber Grid are large companies (power plants, district heating plants and industrial companies) as well as medium sized companies operating in Lithuania and gas supply companies to which AB Amber Grid renders natural gas transmission services. The company is also engaged in natural gas transit to the Kaliningrad Region of the Russian Federation. Employees of AB Amber Grid have long-term experience in the field of gas system operation and maintenance and the necessary management skills and qualifications.

Since 10 April 2015, the AB Amber Grid obtained with an open-ended Transmission System Operator’s license and was certified as the Transmission System Operator. The Company alongside with other transmission system operators (TSOs) of East Baltic region countries (Latvia, Estonia, Finland) cooperate on regional market development issues: an East Baltic TSOs coordination group was established; also underway is a study on regional market development alternatives. 

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Gas Transmission Operator GAZ-SYSTEM S.A. is a company of strategic importance for the Polish economy, responsible for the transmission of natural gas and the management of the main transmission grid in Poland. Between 2009 and 2015 GAZ-SYSTEM S.A. implemented an investment plan covering the construction of more than 1,200 km of new gas transmission pipelines. The most significant projects of this kind were completed in North-West and Central Poland. The expansion of the gas pipeline network is perceived as a major step in the development of the North-South Gas Corridor integrating the natural gas markets in Central Europe. The projects already completed by GAZ-SYSTEM S.A. and the virtual reverse flow services for the Yamal pipeline have led to a significant improvement of Poland’s energy security by enhancing the technical import capabilities from directions other than eastern of up to 90% of performed imports (before 2011 it was 9%).

The Company manages over 10,300 km of high pressure pipelines, 14 compressor stations, 57 nodes and almost 1,000 exit points. There are over 2,500 people employed at GAZ-SYSTEM S.A. The Company’s assets are worth over 8 bln PLN (ca. 1.9 bln EUR).