Baltic Pipe Explained

Baltic Pipe
Type:natural gas
Start:Europipe II, North Sea
Finish:Poland
Est:27 September — 30 November 2022
Length Km:900

The Baltic Pipe is a natural gas pipeline between Europipe II (which traverses the North Sea between Norway and Germany) and Poland. It is a strategic infrastructure project to create a new European gas supply corridor.

The Baltic Pipe transports natural gas from the North Sea to Poland via Denmark at up to 10e9m3 per year.[1] The project was developed by the Danish gas and electricity transmission system operator Energinet and the Polish gas transmission system operator Gaz-System.[2] The project is recognised as a Project of Common Interest of the European Union.[3] [4]

The Baltic Pipe officially became operational on 27 September 2022, one day after a series of as of yet unexplained explosions on 26 September 2022 rendered the Nord Stream 1 and Nord Stream 2 pipelines from Russia to Germany inoperable.[5]

History

The project started in 2001, when Danish oil and gas company DONG and Polish oil and gas company PGNiG signed an agreement on construction of the pipeline and Danish gas supply to Poland.[6] It was agreed to establish a pipeline consortium with two-thirds of the shares belonging to DONG and one-third to PGNiG with possible Statoil participation.[7] However, shortly afterward the project was suspended, because of economic feasibility.

The project was revived in 2007. On 2 May 2007, PGNiG and Energinet, a Danish transmission system operator, which was taken over Danish natural gas transmission network from DONG, signed an agreement to explore the possibility of constructing the Baltic Pipe[8] using Skanled as a feeder line from Norway.[9] In August 2008, the Polish Government replaced PGNiG with the fully state-owned pipeline operator Gaz-System as the project partner.[10]

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.[11] The European Commission provided €3.2 million for technical design of the pipeline.[12] [13] However, on 16 June 2009 Gaz-System suspended the implementation of the project due to the suspension of the Skanled project and insufficient demand for natural gas in Poland.[14] The project was reactivated by Poland in February 2010 after reviewal,[15] to reduce its use of coal and eastern gas.[16] [9]

The current project was initiated in 2016 when a new feasibility study was conducted.[4] The project was included in the first list of projects of common interest by the European Commission in 2013, and the binding list on 18 November 2015. On 24 November 2017, it was included for the third time.[17] In mid-2017, Energinet and Gaz-System (each owning half of the project) launched the open season procedure.[2] [18] In January 2018, they signed 15-year capacity agreements with market participants. In 2018, public hearings took place in Denmark, Sweden, Germany and Poland. In July 2018, a €18.3 million subsidy was granted from the Connecting Europe Facility.[17] In April 2019, €214.9 million funding was granted to the project by the European Commission.[19]

In 2018, Denmark and Poland ended 40 years of maritime border dispute when they signed an agreement concerning of Baltic Sea between Bornholm and Poland, with Denmark receiving 80% of the area. This paved the way for Baltic Pipe.[20] [21]

Between 2018 and 2020, analytical, survey and design works were carried out in order to obtain the required permits for construction and operation of the Baltic offshore pipeline. Routes through Swedish and German waters were possible, and the Swedish route was chosen.[22]

In 2018, 48% of electricity produced in Poland came from hard coal, 29% from brown coal, 13% from renewable sources (mostly wind power) and 7% from natural gas.[23]

On 3 June 2021, the Danish Environmental and Food Appeals Board announced that it had repealed a land permit issued in 2019 for Baltic Pipe. According to the appeals board, a permit for the project given by the Danish Environmental Protection Agency did not sufficiently lay out the measures that would be taken to protect dormice, Nordic birch mice and bats during construction of the 210-kilometre (130-mile) pipeline across Denmark. The decision meant that Denmark's environmental agency needed to carry out more studies.[24]

On 19 June 2021, the Danish Environmental Protection Agency informed that the Baltic Pipe Project can resume construction works in specific parts of the 210km (130miles) route across Denmark. It is expected that the overall project will be delayed by 3 months, but that it will be able to deliver a large part of the agreed upon capacity by October 2022 working towards delivering full capacity by the end of 2022.[25]

On 21 December 2021, the Danish Environmental Protection Agency began the 8 weeks long hearing period for the Baltic Pipe Environmental Impact Assessment Report and the draft hearing for the project.[26]

On 1 March 2022, the Danish Environmental Protection Agency has issued a new environmental permit for the Baltic Pipe gas pipeline after the original permit was repealed by the Danish Environmental and Food Appeals Board in 2021. With the new permit, Energinet can restart construction on parts of the project in the eastern part of the Jutland peninsula and on the western part of the island of Funen.

In April 2022, the North Sea connection was made. Work still remained onshore.[27]

Energinet commenced commissioning the Baltic Pipe on 27 September 2022, using parts of the existing gas transmission system in Denmark as temporary replacement for the parts that have been delayed. The entire project is expected to be operational at full annual capacity of up to 10e9m3/a by 1 January 2023.[28] By August, the pipeline had been welded, tested and cleaned between Denmark and Poland.[29] On 15 September, PGNiG announced that no hydrocarbons were found in the Norwegian Copernicus oil and gas field, of which they own 50%.[30] On 23 September, PGNiG and Equinor announced a 10-year gas supply contract through Baltic Pipe at 2.4e9m3/a, from 2023 to 2033.[31] The opening of Baltic Sea section took place in Szczecin, Poland on 27 September 2022,[32] and the North Sea section opened on 1 November 2022.[33] Full capacity was ready on 30 November 2022.[34]

Technical features

The original 275km (171miles) submarine pipeline was to connect Faxe South in Denmark and Niechorze-Pogorzelica in Poland. The cost of building that pipeline was estimated at €335-350 million, depending on the diameter of the pipe.[7] It was planned to be built allowing gas flows in both directions.[8]

The current project consists of five major segments:

At fully operational in December 2022,[34] it has a gas transportation capacity of 10e9m3/a from Norway to Denmark and Poland, and 3e9m3/a from Poland to Denmark.[35] The pipeline from the North Sea to Poland has a total length of 800-.

The Baltic Pipe has the capacity to replace the roughly 60% of Polish gas imports coming from Russia via the Yamal pipeline.[36]

See also

External links

Notes and References

  1. Web site: ENERGINET: Baltic Pipe can be put into full operation one month ahead of planned . 2022-09-28 . www.baltic-pipe.eu.
  2. News: CEEP . The Baltic Pipe Project moves to the next level . 2017-07-27 . 2019-07-03.
  3. News: . Baltic power games in the ascendancy . Sam . Morgan . 2019-06-27 . 2019-07-03.
  4. News: Pipeline International . The pipe dream securing EU energy security . 2019-05-25 . 2019-07-03 . 3 July 2019 . https://web.archive.org/web/20190703160931/https://www.pipelinesinternational.com/2019/05/25/the-pipe-dream-securing-eu-energy-security/ . dead .
  5. News: Blasts precede Baltic pipeline leaks, sabotage seen likely . Monika . Scislowska . Jan M. . Olsen . David . Keyton . 2022-09-28 . . American Broadcasting Company . 2022-09-28 .
  6. News: . Scandinavian Gas Headed for Poland . 2001-07-08 . 2007-09-15.
  7. News: . One Step Closer to Diversification . 2001-06-24 . 2007-09-15.
  8. . Denmark and Poland look into gas pipeline . Bente T. . Valentin . 2007-05-02 . 2007-09-15 . https://web.archive.org/web/20070630035332/http://www.energinet.dk/en/menu/News/Newsarticles/Denmark+and+Poland+look+into+gas+pipeline.htm . 2007-06-30 . dead .
  9. Web site: Baltic Pipe Polish diversification project . . February 2008.
  10. News: . . PGNiG eyes Norway booster . 2008-08-28 . 2009-10-14 . subscription.
  11. . The Commission calls for proposals for €4 billion worth of energy investments . 2009-05-18 . 2010-02-21.
  12. News: wnp.pl . Gaz-System pracuje nad projektem technicznym Baltic Pipe . Gaz-System is working on the technical design of the Baltic Pipe . . 2009-09-24 . 2010-02-21 . Polish.
  13. News: wnp.pl . Gaz-System pracuje nad projektem technicznym Baltic Pipe . Gaz-System is working on the technical design Baltic Pipe . . 2009-09-24 . 2010-02-21 . Polish.
  14. News: wnp.pl . BBN o wstrzymaniu prac nad projektem Baltic Pipe . BNS to suspend work on the Baltic Pipe project . Marcin . Szczepański . 2009-12-23 . 2010-02-21 . Polish.
  15. News: wnp.pl . Gaz-System: prace nad Baltic Pipe mogą ruszyć w drugiej połowie 2011 roku . Gaz-System: Work on the Baltic Pipe can be launched in the second half of 2011 . Marcin . Szczepański . 2010-02-11 . 2010-02-21 . Polish.
  16. Web site: Shotter . James . Polish gas network close to fully financing Baltic Pipe to Norway . www.ft.com . https://web.archive.org/web/20200722042038/https://www.ft.com/content/e3a8266d-3cc4-4c0e-93d0-3fd469553704 . 22 July 2020 . 9 June 2020 . As well as allowing Poland to diversify its gas supplies, the Baltic Pipe will help it decarbonise its economy. Poland derives almost 80 per cent of its electricity from coal . live.
  17. News: Biznes Alert . EU grants another subsidy to Baltic Pipe under the CEF 2018 . 2018-07-20 . 2019-07-03.
  18. News: Biznes Alert . Gaz-System: Market is interested in Baltic Pipe . 2017-07-27 . 2019-07-03.
  19. News: Energy Live News . Poland's Baltic Pipe pumped up with €215m EU grant . Priyanka . Shrestha . 2019-04-15 . 2019-07-03.
  20. Web site: Poland and Denmark sign agreement on maritime boundary in the Baltic Sea The European Maritime Spatial Planning Platform . maritime-spatial-planning.ec.europa.eu . en . 28 November 2018.
  21. Web site: Jak sprytnie Polska i Dania podzieliły Bałtyk . www.polska2041.pl . pl.
  22. Web site: Baltic Pipe – From Idea to Decision . Warsaw Institute . https://web.archive.org/web/20230602181004/https://warsawinstitute.org/baltic-pipe-idea-decision/ . 2 June 2023 . 21 May 2018 . live.
  23. Web site: Energy statistics in 2017 and 2018. 2020-03-18 . https://web.archive.org/web/20200223205634/https://stat.gov.pl/download/gfx/portalinformacyjny/pl/defaultaktualnosci/5485/4/14/1/gospodarka_paliwowo-energetyczna_w_latach_2017_i_2018.pdf . 23 February 2020 . live.
  24. Web site: Denmark suspends Baltic gas pipeline, in setback for Poland. ABC News.
  25. Web site: Baltic Pipe set to continue in selected areas in Denmark. Energinet.
  26. Web site: 8 weeks public hearing started for Baltic Pipe environmental permit. Energinet.
  27. Web site: Skopljak . Nadja . First gas flows between Denmark and Norway after Baltic Pipe North Sea construction ends . Offshore Energy . 27 April 2022.
  28. Web site: New environmental permit restarts construction on halted parts of Baltic Pipe. Energinet.
  29. Web site: Baltic Pipe to Start Gas Transmission Sept. 27 - Minister . 3 August 2022.
  30. Web site: Cavcic . Melisa . No hydrocarbons for Polish firm in Norwegian Sea well . Offshore Energy . https://web.archive.org/web/20220915132141/https://www.offshore-energy.biz/no-hydrocarbons-for-polish-firm-in-norwegian-sea-well/ . 15 September 2022 . 15 September 2022 . live.
  31. Web site: Kulovic . Nermina . Poland strengthening its energy security via 10-year gas sales contract with Norway . Offshore Energy . 23 September 2022.
  32. Web site: Aasland. Terje . 2022-09-27 . Opening of the Baltic Pipe line . 2022-09-28 . . en.
  33. Web site: Baltic Pipe's receiving terminal is receiving gas from Norway . . en . 1 November 2022.
  34. Web site: Baltic Pipe has commenced operation at full capacity . . https://web.archive.org/web/20221201222411/https://en.energinet.dk/About-our-news/News/2022/11/30/Baltic-Pipe-full-capacity . 1 December 2022 . en . live.
  35. News: World Pipelines . Baltic Pipe infrastructure location decision made . Lydia . Woellwarth . 2019-06-25 . 2019-07-03.
  36. News: Easton . Adam . 26 April 2022 . Russia halts gas supplies to Poland, reports say . BBC News . Warsaw . 26 April 2022.

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