01.05.2022
GIPL gas interconnection between Poland and Lithuania is launched
On 1 May 2022, the GIPL pipeline connecting Lithuania and Poland was launched as planned, transmitting the first physical and commercial gas flows. The 508 km GIPL interconnection between Poland and Lithuania effectively expands the European gas market by integrating the Baltic States and Finland. This step strengthens the energy independence of the region and increases the possibilities of using the Klaipėda LNG terminal.
Two auctions for the initial gas transmission capacity on the GIPL pipeline held in the second half of April demonstrated interest in the use of GIPL pipeline. During the first auction on 19 April were sold small capacity towards Lithuania, while during the second auction held on 27 April were sold one third of GIPL's technical capacity towards Poland. The auctions took place on the GSA's capacity booking platform, which allows gas market participants to jointly book gas transmission capacity on the Lithuanian and Polish systems at the Santaka gas entry and exit point between Lithuania and Poland. Daily capacity auctions will be held every day after the start of operation of the GIPL pipeline. Actual gas flows at the GIPL interconnector can be monitored on Amber Grid's website.
“For the first time in the history of the countries, after a long period of implementation of the GIPL interconnection, gas flows through the GIPL pipeline. Today, gas is transported to Poland, but depending on the needs of market, gas will be transported to both – Lithuania and Poland. This is a milestone in the history of the development of energy independence between Lithuania and Poland, especially in the context of security of gas supply. Having the opportunity to import and export gas through the GIPL interconnector, Lithuania and Poland have increased not only their own energy security, but also that of the Baltic States and Finland as a region, which is especially important in the current geopolitical conditions. Reliable infrastructure for uninterrupted energy exchanges is a key element in the region's economic growth," said Nemunas Biknius, CEO of Amber Grid.
Next Thursday, on the 5th of May, Lithuania will host the commissioning ceremony of the GIPL interconnection, in participation of the Presidents of Lithuania, Poland and Latvia, the EU Commissioner for Energy, the ministers of energy of the Baltic States and Poland, and the CEOs of the Lithuanian and Polish gas transmission system operators that implemented the project.
In the next five months, the capacity to transport gas from Lithuania to Poland will reach 217 000 m3/h or 2.4 GWh/h. This corresponds to 1.9 bcm/year or 21 TWh/year. Gas transportation capacity from Poland to Lithuania will be 230 000 m3/h or 2.6 GWh/h. This corresponds to 2 bcm/year or about 22 TWh/year.
The construction of the GIPL interconnection is the largest investment in the development of Lithuania's gas transmission system since re-establishment of the country’s independence. The total value of the project is around €500 million, with around 60% of the funds provided by the European Commission. The Latvian and Estonian gas transmission system operators have also contributed to project financing.
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