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Baltic Pipe Project granted construction subsidy

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World Pipelines,

The Baltic Pipe Project has been granted the subsidy for construction works under the Connecting Europe Facility (CEF) by the European Commission. The maximum allocated support amounts to nearly €215 million. This decision emphasises the significance of the project for building the European gas market and strengthening the security of supply in the region.

The European Commission’s decision to grant GAZ-SYSTEM with financial assistance for the Baltic Pipe Project for the action titled ‘Construction works for the PCI infrastructure cluster 8.3’ was approved by the EU Member States on 23 January 2019. The subsidy was granted as part of the CEF Energy second grant competition conducted in 2018.

The subsidy will be used for the construction works on both the offshore gas pipeline connecting the transmission systems of Poland and Denmark, as well as for the expansion and modernisation of the Polish natural gas transmission system.

The Baltic Pipe Project already received financial support under the CEF three times – in 2015, 2017 and 2018. The grant awarded so far amounts to a maximum of €51.8 million and covers the activities such as development of the feasibility study and the engineering works up to the obtaining of the necessary administrative permits for both the offshore gas pipeline construction and the development of the national transmission infrastructure in Poland and Denmark.

The total amount of the EU support for GAZ-SYSTEM's Baltic Pipe Project is over €243.5 million. The Connecting Europe Facility is a key EU instrument for promoting economic growth, employment and competitiveness, aimed, among other things, at enhancing Europe's energy security.

“We have reached another important stage of the investment. The amount of the grant is in line with our application. Thus, the European Commission recognises all our arguments indicating the importance of the Baltic Pipe Project for the entire European Union and the region” said Tomasz Stepien, President of GAZ-SYSTEM.

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