Baltic Pipe
Encyclopedia
The Baltic Pipe is a proposed natural gas
pipeline
between Denmark
and Poland
. When completed, it will transport natural gas from Norway
to Poland via Denmark.
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. 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, and Gaz-System is expecting to launch construction of the pipeline in the second half of 2011.
. At the same time Denmark is looking at importing Russian gas via Poland and the Baltic Pipe.
in Poland. The capacity and diameter of the pipeline has not yet been determined. However, in 2001 it was discussed that the pipeline should transport at least 5 billion cubic meter (bcm) of gas per year. The cost of building the pipeline was estimated at €335-350 million, depending on the diameter of the pipe. It is planned to built allowing gas flows in both directions.
The European Commission has provided €3.2 million for technical design of the pipeline.
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
between Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
and Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
. When completed, it will transport natural gas from Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
to Poland via Denmark.
History
The project started in 2001, when Danish oil and gas company DONGDONG Energy
-History:The Danish state company Dansk Naturgas A/S was founded in 1972 to manage resources in the Danish sector of the North Sea. After some years, the company was renamed to Dansk Olie og Naturgas A/S . At the beginning of 2000s, DONG started to extend itself into the electricity market by...
and Polish oil and gas company PGNiG
PGNiG
Polskie Górnictwo Naftowe i Gazownictwo is a Polish state-controlled oil and natural gas company, which deals with the exploration and production of natural gas and crude oil, natural gas import, storage and distribution and sales of natural gas and crude oil...
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
Statoil
Statoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
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
Energinet.dk
Energinet.dk is the Danish national transmission system operator for electricity and natural gas. It is an independent public enterprise owned by the Danish state under the Ministry of Climate and Energy...
, 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
Gaz-System
Gaz-System S.A. is a designated natural gas transmission system operator in Poland.The company was established on 16 April 2004 as a wholly owned subsidiary of PGNiG under the name PGNiG – Przesył Sp...
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
Skanled
Skanled was a planned natural gas offshore pipeline connecting Norway to Sweden and Denmark.-Technical features:The submarine pipeline was to start in the Kårstø natural gas processing plant in western Norway, where it was to be connected with the Europipe II...
and Baltic Pipe projects. 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, and Gaz-System is expecting to launch construction of the pipeline in the second half of 2011.
Aim
Originally, the Baltic Pipe project was linked to the Skanled project. Poland wanted to import Norwegian gas via Skanled, through the Danish natural gas system and the Baltic Pipe. After suspension of the Skanled project, Poland sees the pipeline as an export route for surplus gas from its planned LNG terminal at ŚwinoujścieSwinoujscie
Świnoujście is a city and seaport on the Baltic Sea and Szczecin Lagoon, located in the extreme north-west of Poland. It is situated mainly on the islands of Uznam and Wolin, but also occupies smaller islands, of which the largest is Karsibór island, once part of Usedom, now separated by a Piast...
. At the same time Denmark is looking at importing Russian gas via Poland and the Baltic Pipe.
Technical features
The 230 kilometres (142.9 mi) submarine pipeline will connect Redvig in Denmark and NiechorzeNiechorze
Niechorze is a village in the administrative district of Gmina Rewal, within Gryfice County, West Pomeranian Voivodeship, in north-western Poland. It is situated between the Baltic Sea to the north and Liwia Łuża lake to the south...
in Poland. The capacity and diameter of the pipeline has not yet been determined. However, in 2001 it was discussed that the pipeline should transport at least 5 billion cubic meter (bcm) of gas per year. The cost of building the pipeline was estimated at €335-350 million, depending on the diameter of the pipe. It is planned to built allowing gas flows in both directions.
The European Commission has provided €3.2 million for technical design of the pipeline.