Thursday 24 July 2014

New gas pipeline connecting Poland and Germany?

It is said that in 2018 there is a real possibility of building the pipeline connecting Germany and Poland : between Bernau and Szczecin. 85 % of the pipeline will be on the territory of Germany.

Dariusz Malinowski, the author of the article on the possibility of the new order on Polish gas market has brought up a few very interesting points. It is said that in 2018 there is a real possibility of building the pipeline connecting Germany and Poland : between Bernau and Szczecin. 85 % of the pipeline will be on the territory of Germany.

The development, maintenance and control of the pipeline might end up being in the hands of one company. Currently, Polish Energy Partners (PEP) is in the process of acquiring assets of Polenergia Holding. Polish Energy Partners SA (PEP), as stated on their website, is one of the leading companies in Poland in the field of energy projects based on renewable energy sources. Company produces more than 8% of the country's renewable energy from wind and biomass. PEP bought gas pipeline project linking Poland and Germany from E.ON consortium-Bartimepex. After all the changes in the shareholders structure, Kulczyk Investment will have at least 51% of shares in the holding, therefore practically will have control over the pipeline.

The construction of the pipeline would enlarge the capacity of gas imports by 20%, what can cause significant changes on the gas market. Together with the soon opening of the LNG in Swinoujscie, the pipeline will truly enlarge possibility of import of cheaper gas from Germany. For some it definitely might be beneficial and might cause the resignation from the supply of gas from PGNiG (Polish Gas and Oil Company) who is the biggest supplier on the market at the moment.

Additionally, new pipeline would also allow for faster construction of the gas market, which practically does not exist (there isn’t a hub for the gas exchange, as for example British NBP or Dutch TTF). Partially, this is due to the dominant position of PGNiG and the lack of alternative supply lines. Experts in the field believe that each interconnector would improve the situation on the market.