Baltic Pipe


The Baltic Pipe is a proposed natural gas pipeline between the Norwegian sector of the North Sea and Poland. It is a strategic infrastructure project to create a new gas supply corridor. When completed in October 2022, it will transport natural gas from the North Sea to Poland via Denmark. The project is being developed by the Danish gas and electricity transmission system operator Energinet and the Polish gas transmission system operator Gaz-System. The project is recognised as a project of common interest of the European Union.

History

The project started in 2001, when Danish oil and gas company DONG and Polish oil and gas company PGNiG signed an agreement on construction of the pipeline and Danish gas supply to Poland. It was agreed to establish a pipeline consortium with two-third shares belonging to DONG and one-third to PGNiG with possible Statoil participation. However, shortly afterward the project was suspended, because of economic feasibility.
The project was revived in 2007. On 2 May 2007, PGNiG and Energinet.dk, a Danish transmission system operator, which was taken over Danish natural gas transmission network from DONG, signed an agreement to explore the possibility of construction the Baltic Pipe. In August 2008, the Polish Government replaced PGNiG with the fully state-owned pipeline operator Gaz-System as the project partner.
On 18 May 2009, the European Commission launched a call for proposals for grants in the framework of the European Energy Programme for Recovery. It proposed to allocate about €150 million for implementation of Skanled and Baltic Pipe projects. The European Commission provided €3.2 million for technical design of the pipeline. However, on 16 June 2009 Gaz-System suspended the implementation of the project due to suspension of the Skanled project and lack of natural gas demand in Poland. The project was reactivated by Poland in February 2010 after reviewing the project.
The current project was initiated in 2016 when a new feasibility study was conducted. The project was included in the first list of projects of common interest by the European Commission in 2013, and the binding list on 18 November 2015. On 24 November 2017, it was included for the third time. In mid-2017, Energinet and Gaz-System launched the open season procedure. In January 2018, they signed 15-year capacity agreements with market participants. In 2018, public hearings took place in Denmark, Sweden, Germany and Poland. In July 2018, a €18.3 million subsidy was granted from the Connecting Europe Facility. In April 2019, €214.9 million funding was granted to the project by the European Commission.
In 2018-2020, the analytical, survey and design works are being carried out in order to obtain the required permits for construction and operation of the Baltic offshore pipeline.

Technical features

The original submarine pipeline was to connect Faxe South in Denmark and Niechorze-Pogorzelica in Poland. The cost of building that pipeline was estimated at €335-350 million, depending on the diameter of the pipe. It was planned to be built allowing gas flows in both directions.
The current project consists of five major segments:
It will have gas transportation capacity of from Norway to Denmark and Poland, and from Poland to Denmark. The pipeline from the North Sea to Poland is expected to have a total length of.