The European Commission will allocate €215 million for a gas pipeline between Poland and Denmark

The European Commission (EC) will allocate €215 million for the construction of the Baltic Pipe gas pipeline between Poland and Denmark. This was announced by the gas operator Gas-System. The construction of the Baltic Pipe is scheduled to be completed by October 1, 2022.

The funds will be allocated within the framework of the financial mechanism for the development of the transport, energy and telecommunications infrastructure. The money can be used for the construction of the offshore section of Baltic Pipe or for the expansion and modernization of the Polish gas transmission system.

Within the framework of this mechanism, Baltic Pipe has already received funding three times. The last grant of almost €52 million covers the development of a feasibility study and engineering work, as well as obtaining administrative licenses.

Gas will be transported from Norway to Poland through Denmark. The planned capacity of the pipeline is 10 billion cubic meters of gas per year. The total cost of the project is estimated at $1.4-1.8 billion.

The agreement on the construction of the gas pipeline was signed in 2007 by the Polish Oil and Gas Company (PGNiG), the Danish company Energinet.dk and the gas transmission system operator Gaz-System. In January 2009, PGNiG decided to transfer investments to Gaz-System.

 

Source: rbc.ua

Tags: gas, contracts, EU, The European Commission

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