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Denmark and Poland considering gas pipeline

Danish electricity and gas transmission network operator Energinet.dk has concluded an agreement with Polish oil and natural gas company PGNiG to explore the possibility of establishing a gas pipeline, called the Baltic Pipe, between Poland and Denmark.

Energinet.dk said that, if the Baltic Pipe becomes a reality, it would connect the Scandinavian natural gas systems and resources with the Polish system, which is currently closely linked to the Russian system. The utility said that as a result, the pipeline would give the Danish and the Polish gas markets access to more supply sources, improving the security of supply and gas market competition. Energinet.dk said that the Baltic Pipe project has close ties to the current Skanled project. As part of this venture, Energinet.dk and a Norwegian consortium are analyzing the possibility of importing Norwegian natural gas into Denmark. The gas is to be transported via an offshore pipeline which will extend from Norway to Sweden and Denmark.

Energinet.dk said that Poland wants to explore the possibilities of importing Norwegian gas via Skanled, through the Danish natural gas system and the Baltic Pipe. The company said that, in order to secure energy supplies, it is looking at importing Russian gas to Denmark via the Baltic Pipe, so that gas would flow in both directions and therefore ensure a well-functioning market. According to Energinet.dk, the Baltic Pipe would increase the utilization the Skanled pipeline, thus enhancing the economy of the project even further. The company said that, if the Skanled and Baltic Pipe projects are realized, transit compensation in connection with transporting Norwegian gas to Poland would help to finance the necessary reinforcements of the Danish natural gas system. Energinet.dk said that, if the Baltic Pipe project turns out to be profitable and is approved by the authorities of the countries involved, the pipeline would initially be financed and owned by Poland. (energy-business-review.com)