The EIB has signed a €65 million loan agreement with Amber Grid to support the Poland–Lithuania gas interconnector.
The operation concerns an EU Project of Common Interest as it integrates the Baltic States and Finland into the wider EU gas market.
The interconnector will diversify gas supply sources, and increase security and reliability of supply for Lithuania and the region.
The European Investment Bank (EIB) has signed a €65 million loan agreement with Lithuanian gas transmission system operator AB Amber Grid to finance the construction of the Lithuanian section of the planned gas interconnection between Poland and Lithuania. The interconnector will be the first high-pressure gas pipeline between Poland and Lithuania, integrating the Baltic States and Finland into the wider EU gas market and diversifying gas supply sources. The project will also increase security and reliability of gas supplies for the local and regional market.
EIB Vice-President Thomas Östros remarked: “Security of energy supply is a recurring theme in the EIB’s investments in the Baltic States. This interconnection with Poland is a key step in the real integration of the European energy market, as it will allow all of the Baltic States and Finland to fully connect to European gas networks.”
On a technical level, the project will see the construction of a 700 mm diameter, 165 km long high-pressure bi-directional underground gas transmission pipeline, with a maximum potential capacity of 2.4 bcm/y (27 TWh/y), running from the border with Poland in the Lazdijai District to the Jauniūnai compressor station located in the Širvintos District, north of Vilnius.
CEO of Amber Grid Nemunas Biknius added: “The favourable terms of the loan clearly indicate the EIB’s recognition of our commitment to the timely implementation of the GIPL project, which will create long-term value for the region’s gas market integration, benefiting consumers and gas market operators across the borders.”
In terms of regional connections, the EIB previously financed the electricity interconnector between Poland and Lithuania, known as the LitPol Link.
Amber Grid (AB Amber Grid) is the owner and operator of the gas transmission network in Lithuania and is almost wholly owned (96.6%) by the Republic of Lithuania through UAB EPSO-G, a state-owned holding company under the supervision of the Ministry of Energy.
The European Investment Bank (EIB) is lending PLN 410 million (EUR 98 million) to the Polish gas transmission operator GAZ-SYSTEM S.A. for the expansion of a gas pipeline in western Poland, from Lwówek to Odolanów. This project, with total approved financing of PLN 500 million (EUR 120 million), will reinforce the EU North-South gas corridor and the connection to alternative sources of gas supply.
The EIB is lending EUR 50 million – the first tranche of an approved loan of EUR 150 million – to TRANSGAZ, Romania’s public gas transmission company, to finance a new pipeline. This transaction is backed by the European Fund for Strategic Investments (EFSI), the financial pillar of the Investment Plan for Europe, or "Juncker Plan".