The Danish transmission gas operator - Energinet.dk - adopted a resolution approving the business plan for the Danish part of the Baltic Pipe. However, it will not be possible to start work yet, until the approval of the Danish minister for energy, utility and climate is given. From the point of view of the Polish energy sector and the country's energy security, this is positive news.
Baltic Pipe - a strategic investment for Poland
Baltic Pipe is of strategic importance because the implementation of this investment will result in significant diversification gas supplies from Norway to Poland. At the same time it will provide possibilities of transit of this raw material from Poland to Denmark and Sweden. The entire project is being implemented in cooperation with two transmission operators - Energinet and Gaz-System.
Gas will flow as early as 2022
The system is to have a capacity of 10 billion cubic meters of gas per year. Completion of the investment is scheduled for 2022. The contract for the receipt of this raw material has already been signed by the Polish PGNiG and covers the delivery period from October 1, 2022 to September 30, 2037. The start of the new contract coincides with the end of the Yamal contract.
A project of community importance
The strategic importance of the project is also evidenced by the fact that it was recognized by European Commission for a project with community status. It fits into the strategic goals of the EU energy policy, aimed at strengthening internal energy market. The investment involves the construction of five key elements:
- Connection of the Danish transmission system to the Norwegian one North Sea
- Construction of a gas compressor station on the Danish island of Zealand
- Construction of a pipeline that will connect the Polish transmission system with the Danish one
- Extension of the transmission route in Denmark
- Expanding the transmission system in Poland
It is estimated that the total cost of this investment will range from PLN 12 to PLN 16 billion Danish crowns. This corresponds to 1,5-2,2 billion euro. The Danish contribution amounts to approximately 6 billion Danish kroner. The strategic documentation states that there is a socio-economic profit associated with the implementation of the project. The rest of the expenses will be covered by the Polish side.
Reply to Nord Stream-2
The Polish-Danish investment is a response to the German-Russian project aimed at building the second line of the Nord Stream gas pipeline. In the assumptions of this project, Poland is to be the end user gas supplied by this system, but via Germany. There is a lot of controversy surrounding this and it is a common postulate put forward by Polish government during meetings with Germany, because it is not consistent with Poland's policy of diversifying supply sources.