OVERVIEW

The Baltic Pipe is a gas pipeline that will eventually connect Poland to the Norwegian continental shelf, via the Danish gas transmission system.
 

  • The Baltic Pipe project is recognized by the European Commission as a ‘Project of Common Interest’ (PCI). Its objectives include: further strengthening of supply diversification; market integration; price convergence; and security of energy supply in Poland and Denmark, as well as Sweden, Central & Eastern Europe (CEE), and the Baltic states.
     

  • The project consists of 5 major components:
     

    • North Sea offshore pipeline (105-110 km)

    • onshore infrastructure enhancement in Denmark

    • compressor station in Denmark

    • Baltic Sea offshore pipeline (bidirectional, approx. 275 km)

    • onshore infrastructure enhancement in Poland

  • Planned commissioning date – October 1, 2022
     

    • Timely completion of the Baltic Pipe will allow Poland to become independent of Russian natural gas.  Poland’s current long-term supply contracts with Russia’s Gazprom expire in 2022.
       

  • Annual capacity is projected to be 10 bcm (roughly 60% of annual natural gas consumption in Poland)
     

  • Investors: Transmission System Operator Gaz-System (Poland) and Energinet (Denmark)
     

    • Poland’s Gaz-System is responsible for the expansion the Polish gas transmission system and the construction of the offshore interconnecting pipeline, and will partially subsidize the gas compressor station in Denmark’s Zealand
       

    • Denmark’s Energinet is responsible for the construction of a gas compressor station in Zealand, the expansion of the Danish transmission system, and the Norway-Denmark tie-in (in cooperation with Norwegian operator Gassco).
       

  • The Baltic Pipe project has received EUR 51.4MM from the Connecting Europe Facility (CEF).  These funds will be used to implement the design works and obtain all necessary administrative permits for both the offshore part of the gas pipeline and the extension of the necessary transmission infrastructure in the territories of Denmark and Poland.


PROJECT TIMELINE

  • 2013 -- Project of Common Interest status obtained (reconfirmed in 2015 and 2017)

  • June 2017 -- Investors signed the Framework Agreement

  • September 2017 -- Geophysical, geotechnical, and environmental surveys for the offshore pipeline commenced (conducted by Gaz-System contractor, Ramboll Denmark A/S)

  • November 2017 to January 2018 -- Environmental Impact Assessment procedures for the offshore pipeline initiated (including Espoo procedure)

  • January 2018 -- PGNiG S.A. & Investors signed Capacity Agreements for 15 years (2022-2037)

  • June 2018 -- Gaz-System chose the preferred route of the offshore pipeline (through DK-SE-DK-PL waters)

  • November 30, 2018 -- Positive Investment Decisions by Investors; Construction Agreement takes effect

  • March 2019 -- Applications submitted for building permits in DK and SE

  • April 2020 -- Construction permits obtained for the offshore pipeline

  • October 2022 -- Commissioning date