Danish gas transmission operator Energinet and Polish gas transmission operator GAZ-System are jointly planning a new bidirectional transnational pipeline, linking the Norwegian North Sea offshore gas fields with markets in both Denmark and Poland.
The proposal supersedes that of the 2001 proposal by Denmark’s Orstead (previously DONG) and Polish oil and gas company Polskie Górnictwo Naftowe i Gazownictwo SA (PGNiG), which was suspended on doubts as to its economic feasibility.
This Baltic pipe development will carry Norwegian gas to the Danish, Polish, and Eastern European gas markets, thereby injecting greater competition to gas supplies. In time, the pipeline will be connected to the Polish Baltic Sea LNG import terminal of Świnoujście, operated by Polskie LNG S.A., a subsidiary of Gaz-System. This connection, once completed, will in turn facilitate LNG exports to Denmark and Sweden.
The strategic significance of this new project lies in its ability to help both Denmark and Poland to meet their Paris Accord commitments. For Denmark, this project provides potentially lower gas bills.
For Poland, the additional gas will facilitate the country’s transition from coal-powered generation and heating to natural gas for power production and district heating systems. This shift away from coal will significantly reduce the country’s emissions. And, finally yet importantly, Poland’s negotiating position with Russia’s Gazprom, its traditional gas supplier, will be strengthened.
Costing $2 billion, and 560-mile (900-km), it will increase Eastern Europe’s energy security and simultaneously reduce dependence on Russian gas. Unlike its predecessor, this project has gained financial support from the EU.
The promoters of this Baltic pipe plan expect it to have a lifespan of 50 years and enough capacity to supply 10 billion square meters (m3) of natural gas to Poland and 3 billion m³ of natural gas to both the Swedish and Danish markets.