1. Construction begins for Poland-Slovakia gas interconnection

Source:?https://www.worldpipelines.com/project-news/09092019/construction-begins-for-poland-slovakia-gas-interconnection/

2. Source:?https://en.gaz-system.pl/our-investments/integration-with-european-gas-tramsmission-system/poland-slovakia/

3.?Construction of the Poland-Slovakia gas interconnector is well under way thanks to EU funding

Creation date: September 6, 2019

https://ec.europa.eu/inea/en/news-events/newsroom/construction-poland-slovakia-gas-interconnector-well-under-way-thanks-to-eu

4.?Source:?https://www.hydrocarbons-technology.com/projects/poland-slovakia-gas-interconnection/

1. Construction begins for Poland-Slovakia gas interconnection

Source:?https://www.worldpipelines.com/project-news/09092019/construction-begins-for-poland-slovakia-gas-interconnection/

On 6 September 2019, GAZ-SYSTEM initiated construction of the Polish part of the Poland-Slovakia gas interconnector. The gas pipeline will connect the gas node in Strachocina (Podkarpackie Voivodeship) with the Slovak compressor station in Velké Kapu?any.

The Poland-Slovakia gas interconnection project covers the extension of the internal transmission network in south-eastern Poland and the construction of a gas node in Strachocina and metering station near the Polish-Slovak border. It is executed jointly by the Polish gas transmission system operator GAZ-SYSTEM and the Slovak EUSTREAM. The inaugural ceremony was held in the headquarters of the Museum of Oil and Gas Industry named after Ignacy Lukasiewicz in Bóbrka.

“Construction of the Poland-Slovakia gas interconnection will foster Poland’s independence from the dominant Eastern supplier of this raw material. In combination with the Baltic Pipe and the extended President Lech Kaczynski LNG Terminal in Swinoujscie, this investment project will ensure Poland’s energy security and contribute to the creation of a fully competitive gas market in this part of Europe,” emphasised Piotr Naimski, Polish Government Plenipotentiary for Strategic Energy Infrastructure, in the congratulatory letter.

The entire connection, across both the Polish and Slovak sides, will be 165 km long. The capacity towards Poland will be 5.7 billion m3/yr whereas that towards Slovakia will be 4.7 billion m3/yr. The gas pipeline diameter will be 1000 mm, with an operating pressure of 8.4 MPa.

“GAZ-SYSTEM consistently implements a strategy aiming principally at the creation of an integrated European gas market. The Poland-Slovakia Gas Pipeline, whose construction starts today, is another large investment project implemented by the Company. We want to join the Central European markets to give access to various gas sources to our customers. This will influence the accessibility and competitiveness of prices of the blue fuel in the region,” said Tomasz Stepien, CEO of GAZ-SYSTEM.

Rastislav Nukovic, CEO of EUSTREAM, also stressed the importance of regional co-operation. “I am positive that our project will help to open the gas market of Central and Eastern Europe to new trade possibilities,” he said.

2. Source:?https://en.gaz-system.pl/our-investments/integration-with-european-gas-tramsmission-system/poland-slovakia/

Description of the Investment

The objective of the project is the construction of new, cross-border gas pipeline, that will connect the natural gas transmission systems of Poland and Slovakia. The parties of the project are GAZ-SYSTEM S.A. and Eustream a.s - Polish and Slovak transmission system operators.

The section of Poland-Slovakia gas pipeline located on Polish territory (The Strachocina Gas Pipeline - Poland's border) along with The Strachocina gas compressor, are included in the Poland-Slovakia interconnection (Poland-Slovakia interconnector) with founds from The Connecting Europe Facility (CEF) - EU funding instrument.

Basic parameters of the project (on Polish territory):
? high pressure gas pipeline,
? diameter: 1000 mm,
? working pressure: 8.4 MPa,
? length: approx.?61 km.

Establishing the cooperation with the Slovakian operator is an element of the strategy fulfilled by GAZ-SYSTEM in the area of active participation in creating the integrated gas pipeline network in Central Europe.

Design projects were prepared by PGNiG GAZOPROJEKT S.A.
The contract for the investment project was concluded with a consortium composed of Budimex Mostostal S.A. and Mostostal Kraków S.A.
Investor supervision is held by polish division ECMG GmbH.

Location of the project

The route of the gas pipeline will pass in the Podkarpackie Province through the following communes: Sanok, Bukowsko and Komańcza.

Benefits resulting from the project

The investment will be a significant stage of the?North-South Gas Corridor?conception (regional part) and it will meet a number of functions, including:

? increasing the possibility of meeting the gas needs of national recipients by creating new source of gas and new gas transmission route,
? securing gas supplies in crisis situations, also considering decreasing supply possibilities from Ukraine,
? bringing gas to the south-eastern part of Poland, where there is an extensive transmission system and storage infrastructure,
? gas export from Poland based on deliveries from the LNG Terminal in ?winouj?cie, and in the future also gas extracted from unconventional deposits.

A significant benefit for the local community will be the property tax paid annually by GAZ-SYSTEM in the amount of up to 2% of the value of the constructed transmission infrastructure located within the commune. This will be a regular income for the budget, that can be used for the needs of local communities.

Legal basis

The project is performed based on the provisions of the Act of 24 April 2009 on investment projects related to the liquefied natural gas re-gasification terminal in ?winouj?cie (consolidated wording: Journal of Laws of 2019, item 1554, as amended). The project has been included in the catalogue of projects accompanying the terminal-related projects, pursuant to the Act of 30 May 2014 amending the Act on investment projects related to the liquefied natural gas re-gasification terminal in ?winouj?cie, and amending the Act on real estate management (Journal of Laws of 2014, item 906).

Co-financing by the European Union

Costs of the project with respect to tests and conceptual work covered by co-financing:

• amount of eligible costs: EUR 259 thousand

• co-financing received under the TEN-E programme (jointly for both companies): EUR 129.5 thousand?including: EUR?58.45 thousand for GAZ-SYSTEM

Costs of the project with respect to preparatory activities and engineering activities covered by co-financing:

• estimated value: EUR 9.2 million

• co-financing under the CEF programme (jointly for both companies): EUR 4.6 million

including: EUR?2,267,000 for GAZ-SYSTEM
- Gas pipeline from Strachocina to the Polish border: EUR?2,137,500
- Strachocina Gas Compressor Station: EUR 129,500

GAZ-SYSTEM and EUSTREAM – Polish and Slovak transmission system operator – also received co-financing from the European Union for construction works on the Poland-Slovakia gas interconnection in a total amount of EUR 107.7 million (EUR 55.2 million for EUSTREAM and EUR 52.5 million for GAZ-SYSTEM). The support was provided under the Connecting Europe Facility (CEF).

Read more about the co-financing of the project by funds from the Trans-European Networks for Energy Programme and Connecting Europe Facility.

Project of Common Interest

The European Commission granted the “Project of Common Interest” status to this investment project. More information on the importance of the PCI status for the development of the gas transmission infrastructure can be found in this?tab?and in this?PCI?brochure.

GAZ-SYSTEM S.A. is executing the Poland-Slovakia project while respecting the rights of all interested stakeholders. Please feel free to make comments and remarks and ask questions on the Poland-Slovakia project, which has been granted the “Project of Common Interest” status, via this?form.

Environmental consultations

On 26 August 2016, the Regional Director for Environmental Protection in Rzeszów announced the commencement of a procedure for the issue of the decision on environmental conditions for the project titled: “Construction of an interconnection that connects the transmission systems of the Republic of Poland and the Republic of Slovakia together with the infrastructure required for its operation – Strachocina-Polish border gas pipeline”.

Detailed location decision

On 10 October 2017, Podkarpackie province governor issued the detailed location decision for interconnector connecting the transmission systems of the Republic of Poland and the Republic of Slovakia.

• Notice on issuing the detailed location decision for the investment accompanying projects related to the liquefied natural gas re-gasification terminal in ?winouj?cie for investment ?The construction of interconnector connecting the transmission systems of the Republic of Poland and the Republic of Slovakia"

Building permits

On 28 June 2018, Podkarpackie province governor issued a building permit decision for the Polish section of interconnector connecting the transmission systems of the Republic of Poland and the Republic of Slovakia".

• Notice from 6 July 2018 of Podkarpackie province governor on issuing the building pertmits for "The construction of interconnector connecting the transmission systems of the Republic of Poland and the Republic of Slovakia, along with the infrastructure necessary for its service - Strachocina Gas Pipeline - Poland's border"

3. Construction of the Poland-Slovakia gas interconnector is well under way thanks to EU funding

Creation date: September 6, 2019

https://ec.europa.eu/inea/en/news-events/newsroom/construction-poland-slovakia-gas-interconnector-well-under-way-thanks-to-eu

4. Source:?https://www.hydrocarbons-technology.com/projects/poland-slovakia-gas-interconnection/

The Poland-Slovakia gas interconnection is a new gas pipeline that is planned to be built in order to connect the gas transmission systems of Poland and Slovakia.

Polish gas operator GAZ-SYSTEM and Slovakian gas operator Eustream are developing the project on a collaborative basis.

The 165km?gas interconnection?is being developed as part of the European Union’s (EU) Trans-European Networks – Energy (TEN-E) Programme, which is intended to improve energy security and provide a stable supply of gas across Europe.

Economic analyses and a feasibility study for the pipeline were completed in October 2012 and May 2013 respectively.

The European Commission (EC) granted Project of Common Interest (PCI) status to the project in November 2017.

This status is awarded to key infrastructure projects that aim to improve the energy market within the EU, along with helping to secure an affordable and sustainable source of energy.

GAZ-SYSTEM and Eustream signed a grant agreement for construction of the project in December 2017.

A connection agreement was subsequently signed by the two operators in April 2018, which was later used to support a positive final investment decision.

The project is estimated to cost a total of €269.35m ($316.1m).

Construction works are slated to commence in the second half of 2018 and the interconnection is expected to be commissioned in 2021.

Poland-Slovakia gas interconnection project details

The Poland-Slovakia gas interconnection will be a high-pressure, bi-directional pipeline with a diameter of 1,000mm.

Its Polish section will be 59km-long and have a working pressure of 8.4 megapascals (Mpa), while the Slovakian portion of the pipeline will be 106km-long and feature a working pressure of 7.4MPa.

"Construction works are slated to commence in the second half of 2018 and the interconnection is expected to be commissioned in 2021."

The pipeline will transport 6.128 billion normal cubic metres (Nm3) a year from Slovakia to Poland, while 5.052 billion Nm3?a year will be transported from Poland to Slovakia.

The Polish segment of the pipeline will run through the communes of Sanok, Bukowsko and Komańcza in the Podkarpackie Province.

Meanwhile, the Slovakian section begins from the border with Poland in the Palota village at Lupkovsky pass to an existing station at Ve?ké Kapu?any.

The project will include the construction of a compressor station in Strachocina and three closing shutoff valve stations in the villages of Hankovce, Chlmec and ?amudovce respectively.

The existing Ve?ké Kapu?any compressor station will be expanded with the addition of two new 8MW electric?compressor?units.

Furthermore, the development will include the strengthening of the existing gas network in south-eastern Poland.

Financing

The EC awarded a grant of €129,500 ($168,375) to GAZ-SYSTEM and Eustream to carry out testing and conceptual works for the TEN-E initiative.

The EC also granted €4.6m ($5.1m) towards preparatory and engineering activities under the Connecting Europe Facility (CEF) Programme, which supports infrastructure projects in the transport, telecommunications and energy sectors.

In addition, the project received an additional €107.7m ($114.5m) towards construction costs under the CEF programme.

Contractors involved

GAZOPROJEKT prepared the feasibility study for the project in collaboration with Ernst & Young and Slovakian GasTech.

The Polish section of the pipeline was designed by PGNiG GAZOPROJEKT and the environmental impact assessment for the Slovakian section was prepared by Oil Gas Projekt.

Mantovani was awarded a €25m ($29.2m) contract by Eustream to supply gas pipelines for the development as part of?a joint venture (JV) with a Slovakian company.

Poland-Slovakia gas interconnection project benefits

The Poland-Slovakia gas interconnection will form a key part of the North South Gas Interconnections in central and south-eastern Europe.

It is anticipated to enable the integration of natural gas networks and improve energy security?across the region.

The project will diversify the?gas?supply routes for Central and Eastern European (CEE) countries by providing direct access to the ?winouj?cie LNG terminal, Klaipeda LNG, Gas Interconnection Poland-Lithuania, the Baltic Pipe, the Slovakia-Hungary Interconnection and the planned Eastring pipeline.

The interconnection will also provide a new gas supply route for Poland.

Additionally, it is slated to increase the property tax paid by GAZ-SYSTEM by 2% a year, which will be put towards addressing the requirements of the local communities.