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EU grants another subsidy to Baltic Pipe under the CEF 2018

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World Pipelines,


The Baltic Pipe Project has been granted another subsidy under the Connecting Europe Facility Programme (CEF). The European Commission’s proposal to grant financial assistance was approved by the Member States on 16 July 2018.

The subsidy under the Connecting Europe Facility (CEF) for preparatory works within the Baltic Pipe project was awarded in the CEF Energy 2018 call for proposals launched by the European Commission in March this year.

The action titled ‘Reinforcement of the national gas transmission systems in Poland and Denmark for the Baltic Pipe’ will be implemented by the Polish and Danish gas transmission system operators – GAZ-SYSTEM and Energinet – and includes engineering works up to obtainment of all necessary building permits for the onshore gas pipelines in Denmark and Poland.

The maximum amount of the subsidy granted for the entire action is €18.3 million.

Connecting Europe Facility

The Connecting Europe Facility is a key EU finance facility supporting the economic growth, employment and competitiveness through targeted infrastructural investments at the European level. It supports the development of efficient, sustainable and well interconnected trans-European transport, energy and telecommunication networks.

The Baltic Pipe Project has already received financial support under the CEF programme. In 2015, a subsidy under CEF Energy was granted for analytical work and feasibility study development. It was followed by another grant in 2017 awarded to the activity titled ‘Preparatory works for the Baltic Pipe Project up to obtainment of all necessary permission(s) in Poland’. In May this year, GAZ-SYSTEM announced that the grant agreement has been signed.

Project of Common Interest

In November 2017, the European Commission classified the Baltic Pipe project as a Project of Common Interest (PCI). This status is assigned to infrastructural projects of special importance for the improvement of the security and the level of diversification of gas supplies in Europe, and building of an integrated and competitive gas market. The Baltic Pipe project was included in the 3rd list in extended scope within the confines of the ‘Plan of action with regard to interconnectors in the power market of the Baltic States for gas’ (BEMIP). The project received the PCI status for the third time. Earlier, the Baltic Pipe project was included in the PCI lists adopted in 2013 and subsequently in 2015.

The PCI status of the Baltic Pipe project together with the funds granted under the CEF programme stress the importance of the project for the accomplishment of the goals of the energy policy of the EU, such as strengthening of competition, integration of gas markets, improvement of the security of supplies, and effective implementation of the sustainable development principles.

The Baltic Pipe is a strategic infrastructural project, the purpose of which is to create a new gas supply corridor on the European market. It will enable for the first time in history to transport gas directly from its deposits in Norway to the markets of Denmark and Poland, as well as to customers in the adjacent countries.

The main objectives of the project include strengthening of the diversification of supplies, gas market integration, price convergence, and the security of supplies primarily in Poland and Denmark and secondly in Sweden, Central and Eastern Europe and the Baltic region.

Read the article online at: https://www.worldpipelines.com/business-news/18072018/eu-grants-another-subsidy-to-baltic-pipe-under-the-cef-2018/

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