Skanled pipeline could flow gas in mid-2011

Jun 20, 2007 02:00 AM

The Scandinavian Skanled gas pipeline could start transmitting natural gas from Norwegian gas fields in mid-2011, although Poland would only get this gas directly once the Baltic Pipe gas pipeline between Denmark and Poland is built, Economy Minister Piotr Wozniak told.
"The construction of the Skanled pipeline is scheduled to begin in October 2009 so, considering the fact that it would take two construction seasons to build the pipeline, the first gas would be available through the pipeline in mid-2011," Wozniak said. "However, Poland will only get this gas once the Baltic Pipe is built. The exact schedules concerning this investment are being negotiated."

Poland's gas monopolist PGNiG stated that it joined the Skanled consortium to build a pipeline linking Norway to Sweden and Denmark.
"This is another stage of realization by both the company and the government in the policy of diversifying gas supplies to the domestic market," Wozniak said. PGNiG and Germany's E.ON Ruhrgas hold 15 % stakes in the consortium while energy firm Skagerak is the only larger shareholder with a 20 % stake in the 10 company consortium. The 15 % stake means that PGNiG's financial participation in the costs of the investment will also amount to 15 %, but PGNiG will also receive a 15 % stake in transmission capacities of the pipeline.

PGNiG's participation in the Skanled consortium is connected to the realization of the Baltic Pipe project, negotiations for which are still underway. According to earlier reports, PGNiG may sign an agreement on the construction of the Baltic Pipe in 2007. The construction would begin next year, with the Baltic Pipe ready for use in 2009. The construction costs of the 200-km pipeline are estimated at EUR 200-250 mm.
PGNiG recently reached an agreement with Denmark's to implement the Baltic Pipe project between Poland and Denmark.

Wozniak said that the government's gas supply diversification policy will be complete once receives 5-7 bn cm of gas on its north-western coast, out of total annual demand in Poland of circa 14.5 mm cm.

Source: Platts
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