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Baltic States, Poland sign cost-sharing agreement, prepare for construction of GIPL gas pipeline

The Baltic states and Poland have signed a cost-sharing agreement as Lithuania and Poland prepare for the construction of the GIPL gas pipeline that will link the two countries.

The cost-sharing agreement was signed by the Baltic and Polish gas transmission companies last week.

Based on the 2014 decision of the Agency for the Cooperation of Energy Regulators (ACER), the Baltic states will cover 85.8 million euros of Poland’s cost, including 54.9 million euros to be paid by Lithuania (a half of the amount will be allocated by the EU). Latvia will cover 29.4 million and Estonia 1.5 million euros.

The agreement, signed by Lithuania’s Amber Grid, Latvia’s Conexus Baltic Grid, Estonia’s Elering and Poland’s Gaz-System, defines principles necessary for the implementation of the ACER decision regarding the project’s costs.

This agreement allows Amber Grid  to sign an agreement on connecting gas pipelines with the project’s partner Gaz-System. The signing is scheduled for Thursday.

As reported, tenders for contractor work and pipe acquisition for the GIPL will be called this year.

The GIPL construction in Poland and Lithuania should kick off next year. In Lithuania, the GIPL will stretch for 177 km. Previous calculations suggest the project’s overall value stands at 558 million euros, with investments in Lithuania amounting to 136 million euros.

The project’s implementation has been expanded by 2.5 years later from the original plan, and the project should be finished by the end of 2021.

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