High-pressure gas pipeline will substantially increase transmission capacity in central and western Poland

The 168 km pipeline between Gustorzyn in Kujawsko-Pomorskie Province and Odolanów in Wielkopolskie Province is part of a series of capacity upgrades to Poland’s gas transmission network that will improve energy security and encourage competition.

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The old pipeline between Gustorzyn and Odolanów is in poor technical condition, suffers from transmission losses, and is unable to cope with increasing demand. The new 700 mm pipeline will follow the same route as the existing gas pipeline, and will allow gas to be pumped in both directions depending on network needs.

The state-owned Gaz-System SA is committed to building more than 1 000 km of new gas pipelines across Poland by 2014. The capacity upgrade of the gas transmission network in Poland is an essential element of the proposed trans-European north-south gas corridor connecting the liquefied natural gas (LNG) terminal in Świnoujście, on Poland’s Baltic coast, with the planned Adria LNG terminal on Croatia’s Adriatic coast.

The new pipeline between Gustorzyn and Odolanów, taken together with the other planned pipeline upgrades in Poland, will also allow the country to receive gas from new sources with an underlying aim of improving energy security not only in Poland but in the European Union as a whole.

As well as making it possible to reverse the flow of gas between Gustorzyn and Odolanów, the new pipeline will also lead to greater operational safety between underground gas storage facilities in Mogilno and Wierzchowice, both of which are due to be expanded.

Encouraging competition in the Polish gas market

In addition to ensuring sufficient capacity for the forecast future flows of gas, the planned pipeline will enable new customers and distribution networks to connect to the system. Allowing third-party access (TPA) to the pipeline will help to develop a competitive market in gas in Poland. The TPA principle is currently only applied to a limited extent in Poland due to inadequate transmission capacity.

Local authorities through which the pipeline runs will benefit from a new income stream as the owner of the pipeline will pay an annual property tax amounting to 2 % of the investment value in a given local authority area.

The new pipeline will be built in two stages: Gustorzyn to Turek (approximately 83 km in length) and Turek to Odolanów (approximately 85 km). Construction work on the new pipeline, to include the building of four metering stations, got under way in 2012 and is expected to be completed by mid-2014. Following a tender process, the construction contract to build the pipeline was awarded to Poznan-based ZRUG.

Total and EU funding

The “Gustorzyn-Odolanów gas pipeline” project has an estimated total budget of EUR 173 884 682, of which the EU’s European Regional Development Fund contributed EUR 67 926 636 for the 2007 to 2013 programming period. The project has attracted a further EUR 105 958 046 of private sector investment.

Draft date