THE GAS INTERCONNECTION POLAND LITHUANIA (GIPL)

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1 THE GAS INTERCONNECTION POLAND LITHUANIA (GIPL) Goals of the Project integrate the gas markets of the Baltic countries and Finland into a single EU gas market, diversify gas supply sources and routes, security and reliability of gas supplies, increase the flexibility of the gas transmission system in BEMIP region and establish the mechanism of solidarity in case of emergency, create preconditions for a competitive regional gas market. The Project is implemented by AB Amber Grid, GAZ-SYSTEM S.A. The Project milestones 1. Business Case Analysis (prepared in 2011), 2. Feasibility Study (prepared in 2013), 3. The project was included in the list of the EU Projects of Common Interest (2013, 2015, 2017), 4. Enviromental Impact Assessment ( ), 5. Non-Binding phase of the Open Season procedure (2015), 6. Engineering design ( ), 7. Construction ( ). Progress of the project On 24 May 2018 Lithuanian and Polish gas transmission system operators AB Amber Grid and GAZ-SYSTEM S.A. have signed a grid Connection Agreement on Thursday to invest into Gas Interconnection Poland-Lithuania (GIPL) thus starting a construction stage of the project. On 11 May 2018 Lithuanian, Latvan, Estonian and Polish transmission system operators signed an agreement on implementation of ACER's decision on the GIPL project s cross-border cost allocation. On 20 January 2015, the Environmental Protection Agency under the Ministry of the Environment of the Republic of Lithuania issued Letter No (15.9)-A4-477 approving the Environmental Impact Assessment (EIA) Programme of the Gas Interconnection Poland Lithuania (GIPL) construction part in the territory the Republic of Lithuania. The procedures started back in the second half of 2013 were completed in All the documents permitting construction required for the Lithuanian part of GIPL were received by 27 September Route of the Gas Transmission Pipeline

2 The EU assistance The preparation of the Business Case Analysis and Feasibility Study of the GIPL was granted by the European Commission Trans-European Energy Networks (TEN-E) Programme. The EU financial contribution covered 50% of the Business Case Analysis and Feasibility Study s preparation costs. The remaining part of the costs was equally covered by the own funds of AB Amber Grid and GAZ-SYSTEM S.A. The preparation of the GIPL EIA Report (the title of the Action is From environmental impact

3 assessment documents of the Gas Interconnection Poland Lithuania to decision on environmental protection No 2013-G224 /13-ENER/13/TEN-E-SI EU) was granted by the EU financial assistance under the European Commission's Trans-European Energy Networks (TEN-E) Programme. The EU financial support that was granted covers 50% of the EIA Report preparation-related costs. The remaining part was funded by AB Amber Grid and GAZ-SYSTEM S.A. themselves. On 13 May 2015 (amended in January 2017) AB Amber Grid and GAZ-SYSTEM S.A. signed a tripartite agreement with the European Union's (EU) Innovation Network Executive Agency (INEA) on the financial assistance of the EU to the Project "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 up to EUR 10.2 million under the Connecting Europe Facility (CEF). Amber Grid's part accounts up to EUR 2.51 million. On 15 October 2015 (amended i njanuary 2017) AB Amber Grid and GAZ-SYSTEM S.A. signed a tripartite agreement with the EU Innovation Network Executive Agency (INEA) on the financial assistance of the EU to the Project Construction of Gas Interconnection Poland-Lithuania (GIPL) including supporting infrastructure. Under this Agreement, the Project was granted financial assistance of the EU up to EUR million under the Connecting Europe Facility (CEF). Amber Grid's part accounts up to EUR 57.9 million. Following the decicion by ACER (as of 11 August, 2014) regarding the solution for the crossborder cost allocation, the part of the construction works of the GIPL project will be co-financed by Lithuania, Latvia and Estonia, which will cover part of the infrastructure costs in Poland accordingly. The Project is a part of the following plans The European Network of Transmission System Operators (ENTSO-G) Ten-year Development Plan announced in The Baltic Regional Transmission System Operators Gas Regional Investment Plan for The National Key Electricity and Gas Transmission Projects Implementation Plan as approved by the Resolution of the Government of the Republic of Lithuania.

4 ENHANCEMENT OF LATVIA-LITHUANIA INTERCONNECTION Goals of the Project enhance the capacity of the gas systems interconnection between Latvia and Lithuania, ensure security of gas supplies, create conditions for a better integration of the gas markets of the Baltic States, ensure security and reliability of operating gas system. The Project is implemented by AS Conexus Baltic Grid, AB Amber Grid. Description of the Project This Project aims at enhancing the capacity of the gas systems interconnection between Latvia and Lithuania, ensuring safe and reliable natural gas supply, and achieving a more effective use of the infrastructure and better integration of the gas markets of the Baltic States. The implementation of the Project will also contribute to creating better conditions for the use of the Latvian Inčukalns Underground Gas Storage for Lithuania s and, in future, for Poland s gas market participants. The integration of the Baltic gas markets into a single European Union gas market, this interconnection will become an important route linking Europe and the Eastern Baltic region s markets. In 2018, the feasibility study and cost-benefit analysis for the project of the Enhancement of Latvia- Lithuania interconnection was carried out. It is expected to completed the project by Route of the Gas Transmission Pipeline

5 Powered by TCPDF ( The EU assistance Amber Grid and Conexus Baltic Grid have signed a trilateral agreement with the Innovation and Networks Executive Agency (INEA) on financing the feasibility study of the enhancement of capacity of the gas transmission pipeline interconnection between Latvia and Lithuania from the EU Connecting Europe Facility (CEF). The EU support earmarked for the study is up to EUR 175,000. The Project is a part of the following plans The European Network of Transmission System Operators (ENTSO-G) Ten-year Development Plan announced in The Baltic Regional Transmission System Operators Gas Regional Investment Plan for The National Key Electricity and Gas Transmission Projects Implementation Plan as approved by the Resolution of the Government of the Republic of Lithuania.