GIPL Pipeline Facing Problems in Poland
- New Europe Investor
- June 16, 2015
The Prime Minister of Lithuania, Algirdas Butkevicius has called on Poland to find a solution to the financing of the Polish side of the gas pipeline being constructed between the two countries.
The pipeline, known as GIPL, which stands for Gas Interconnection Poland-Lithuania, is part of the Baltic Energy Market Interconnection Plan.
Butkevicius and the Prime Minister of Poland, Ewa Kopacz met in Brussels last week and discussed the issue.
The project is of such importance to Lithuania in diversifying its energy needs, towards the end of last year it gave it status of ‘national economic significance’.
Lithuanian press office released a statement stating that the pipeline “will ensure the creation of the EU’s energy union”
The Baltic countries of Estonia, Latvia and Lithuania asked the European Commission and Poland to find a solution for financing. This suggests all parties are perhaps waiting for EU funding on the project.
Lithuania’s Delfi reports that the EU Agency for the Cooperation of Energy Regulators (ACER), stated that some funds would be paid by Estonia, Latvia and Lithuania to Poland as it is a ‘net cost bearer.’
The payments due to Poland, they said would be €54.9 million from Lithuania, €29.4 million from Latvia and €1.5 million from Estonia. It is understood that Poland is looking for higher amounts.
The total cost of the project, that is due to began next year, is up to €560 million.
The 534 km pipeline will connect the Lithuainian gas compressor of Jauniūnai and the Polish one of Rembelszczyzna. 177 km of the pipeline falls on the Lithuanian border.
Construction will be completed in 2019 with the pipe in operation the following year.