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.[8] 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.[9] However, shortly afterward the project was suspended, because of economic feasibility.[citation needed]
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[10] using Skanled as a feeder line from Norway.[11] In August 2008, the Polish Government replaced PGNiG with the fully state-owned pipeline operator Gaz-System as the project partner.[12]
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 €150million for implementation of Skanled and Baltic Pipe projects.[13] The European Commission provided €3.2million for technical design of the pipeline.[14][15] 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.[16] The project was reactivated by Poland in February 2010 after reviewal,[17] to reduce its use of coal and eastern gas.[18][11]
The current project was initiated in 2016 when a new feasibility study was conducted.[3] 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.[19] In mid-2017, Energinet and Gaz-System (each owning half of the project) launched the open season procedure.[4][20] 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 €18.3million subsidy was granted from the Connecting Europe Facility.[19] In April 2019, €214.9million funding was granted to the project by the European Commission.[21]
In 2018, Denmark and Poland ended 40 years of maritime border dispute when they signed an agreement concerning 3,600km2 (1,400sqmi) of Baltic Sea between Bornholm and Poland, with Denmark receiving 80% of the area. This paved the way for Baltic Pipe.[22][23]
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.[24]
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.[25]
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.[26]
On 19 June 2021, the Danish Environmental Protection Agency informed that the Baltic Pipe Project can resume construction works in specific parts of the 210-kilometre (130mi) 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.[27]
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.[28]
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.[29]
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 10billion cubic metres per annum (350billion cubic feet per annum) by 1 January 2023.[2] By August, the pipeline had been welded, tested and cleaned between Denmark and Poland.[30] On 15 September, PGNiG announced that no hydrocarbons were found in the Norwegian Copernicus oil and gas field, of which they own 50%.[31] On 23 September, PGNiG and Equinor announced a 10-year gas supply contract through Baltic Pipe at 2.4billion cubic metres per annum (85billion cubic feet per annum), from 2023 to 2033.[32] The opening of Baltic Sea section took place in Szczecin, Poland on 27 September 2022,[6] and the North Sea section opened on 1 November 2022.[33] Full capacity was ready on 30 November 2022.[34]
Technical features
The original 275-kilometre (171mi) submarine pipeline was to connect Faxe South in Denmark and Niechorze-Pogorzelica in Poland. The cost of building that pipeline was estimated at €335-350million, depending on the diameter of the pipe.[9] It was planned to be built allowing gas flows in both directions.[10]
The current project consists of five major segments:
The North Sea offshore pipeline–An offshore pipeline between the Norwegian gas system in the North Sea and the Danish gas transmission system, branching off Europipe II that connects Norway and Germany. Its landfall is on the west coast of Denmark near Blaabjerg. The offshore pipeline was built and operated by Energinet.
Onshore Denmark–Expansion of the existing Danish transmission system from west to east, including 200 kilometres (120mi) of new pipelines. The expansions in Denmark included construction of a new pipeline from Blaabjerg to Nybro, construction of a receiving plant at Nybro, construction of a new pipeline from Egtved to the Little Belt, construction of a new pipeline across the Little Belt, construction of a new pipeline over Fyn from the Little Belt to Nyborg, and construction of a new pipeline on Zealand from Kongsmark to the Baltic Sea offshore landfall at the southeaster part of Zealand. It is built and operated by Energinet.
A compressor station in Denmark located on the eastern part of Zealand, which is necessary for the pipeline between Denmark and Poland. It also ensures the reverse flow. It is built and operated by Energinet, and it is co-financed by Gaz-System.
The Baltic Sea offshore pipeline of 275 kilometres (171mi) between Denmark and Poland providing bi-directional transmission of gas. The route goes through the Danish and Polish maritime areas and Swedish exclusive economic zone with the preferred landfalls in Faxe South Denmark and in Niechorze–Pogorzelica in Poland. The offshore pipeline is built and operated by Gaz-System.
Onshore Poland–expansion of the Polish gas transmission system, including 230 to 340 kilometres (140 to 210mi) new pipeline and three gas compressor stations. It consists of construction of the onshore gas pipeline connecting the offshore gas pipeline to the national transmission system, construction of the Goleniów–Lwówek pipeline, extension of the Goleniów gas compressor station, construction of the Gustorzyn gas compressor station, and extension of the Odolanów gas compressor station. It is built and operated by Gaz-System.
At fully operational in December 2022,[34] it has a gas transportation capacity of 10billion cubic metres per annum (350billion cubic feet per annum) from Norway to Denmark and Poland, and 3billion cubic metres per annum (110billion cubic feet per annum) from Poland to Denmark.[35] The pipeline from the North Sea to Poland has a total length of 800–950 kilometres (500–590mi).[citation needed]
The Baltic Pipe has the capacity to replace the roughly 60% of Polish gas imports coming from Russia via the Yamal pipeline.[36]
Ørsted A/S is a Danish multinational energy company. Headquartered in Fredericia, Denmark, Ørsted is the largest energy company in Denmark. The company adopted its current name on 6 November 2017. It was previously known as DONG.
Nord Stream is a pair of offshore natural gas pipelines in Europe that run under the Baltic Sea from Russia to Germany. It consists of the Nord Stream 1 (NS1) pipeline running from Vyborg in northwestern Russia, near Finland, and the Nord Stream 2 (NS2) pipeline running from Ust-Luga in northwestern Russia near Estonia. Both pipelines run to Lubmin in the northeastern German state of Mecklenburg-Vorpommern. Each pipeline contains two pipes, denoted A and B; each of the four pipes is approximately 1,200 kilometres (750 mi) long and with approximate diameters of 1,220 millimetres (48 in). The combined capacity of the four pipes is 110 billion cubic metres per annum of natural gas.
Polskie Górnictwo Naftowe i Gazownictwo S.A., abbreviated to PGNiG, was a Polish state-controlled oil and gas company, headquartered in Warsaw, Poland. The company has branches and representative offices in Russia, Pakistan, Belarus and Ukraine and holds equity interests in some 30 subsidiaries, including providers of specialist geophysical, drilling and well services.
Balticconnector is a bi-directional natural gas pipeline between Ingå, Finland and Paldiski, Estonia operated by Gasgrid Finland and Elering. It connects the Estonian and Finnish gas grids, and provides Finland with access to the Inčukalns underground gas storage facility in Latvia. In addition, the pipeline enables construction of the regional liquefied natural gas terminal.
The Yamal–Europe natural gas pipeline is a 4,107-kilometre-long (2,552 mi) pipeline connecting Russian natural gas fields in the Yamal Peninsula and Western Siberia with Poland and Germany, through Belarus. The Poland portion ceased operating in 2022.
The Baltic Gas Interconnector was a 2001 project of a natural gas submarine pipeline in the Baltic Sea between Germany, Denmark and Sweden. The pipeline would connect the existing pipeline networks of southern Scandinavian and Continental European countries in order to secure uninterrupted supply of natural gas.
Europipe II is a natural gas pipeline from the Kårstø processing plant north of Stavanger to a receiving terminal at Dornum in Germany. It came on stream on 1 October 1999.
The OPAL (Ostsee-Pipeline-Anbindungsleitung) is a natural gas pipeline in Germany alongside the German eastern border. The OPAL pipeline is one of two projected pipelines connecting the Nord Stream 1 pipeline to the existing pipeline grid in Middle and Western Europe, the other one being the NEL pipeline.
Skanled was a planned natural gas offshore pipeline connecting Norway to Sweden and Denmark.
TenneT is a transmission system operator in the Netherlands and in a large part of Germany.
The Urengoy–Pomary–Uzhhorod pipeline is one of Russia's main natural gas export pipelines, partially owned and operated by Ukraine. It was part of the "gas in exchange for pipes program" and the Soviet-controlled bank "Ost-West Handelsbank" was opened in Frankfurt on 1 March 1973 to support the project.
Vale is an offshore gas field in the North Sea located 16 kilometres (9.9 mi) north of the Heimdal gas field. The depth of the water in the field area is 115 metres (377 ft). Vale is considered a satellite to Heimdal field and is connected to it by a pipeline. Estimated reserves at Vale stand at 2.5 billion cubic metres of natural gas and 21 million barrels (3,300,000 m3) of gas condensate. Vale gas field is expected to produce 1.6 million cubic metres per day of natural gas and 2,600 barrels per day (410 m3/d) of condensate.
OGP Gaz-System S.A. is a designated natural gas transmission system operator in Poland.
Lithuania is a net energy importer. In 2019 Lithuania used around 11.4 TWh of electricity after producing just 3.6 TWh.
The Trans-Anatolian Natural Gas Pipeline is a natural gas pipeline in Turkey. It is the central part of the Southern Gas Corridor, which connects the giant Shah Deniz gas field in Azerbaijan to Europe through the South Caucasus Pipeline and the Trans Adriatic Pipeline. The pipeline has a strategic importance for both Azerbaijan and Turkey. It allows the first Azerbaijani gas exports to Europe, beyond Turkey. It also strengthens the role of Turkey as a regional energy hub.
The Świnoujście LNG terminal is a liquefied natural gas (LNG) import terminal at Świnoujście, in the extreme north-west of Poland near the Polish-German border. The LNG terminal is operated by Polskie LNG S.A., a subsidiary of Gaz-System. The cornerstone for construction was laid on 23 March 2011 and it took its first LNG delivery on 11 December 2015. The terminal's regasification capacity is 5 billion cubic metres per annum. The terminal is currently being expanded and once the expansion is complete in 2023, it will have a capacity of 7.5 billion cubic metres per annum and be able to satisfy about half of Poland's annual natural gas demand. Together with the 10 bcm of natural gas that Poland will receive annually from Norway via the Baltic Pipe natural gas pipeline, the Świnoujście LNG terminal will allow Poland to achieve its long-term goal of becoming fully independent of Russian natural gas, which had previously been the source of almost all of the country's natural gas.
The oil industry in Poland began at Bóbrka Field in 1853, followed by the first refinery in 1854. Poland was the third most productive region in the world in 1900. It now has only a small, mostly state-owned component, with production from its Permian Basin in the west, small and very old fields in the Carpathians in the south, and offshore in the Baltic Sea. For natural gas the country is almost completely dependent on legacy pipelines from the former Soviet Union.
Gas Interconnection Poland–Lithuania (GIPL) is a gas pipeline between Poland and Lithuania. The pipeline was commissioned and started commercial operation on 1 May 2022. The length of the pipeline is 508 km (316 mi) and the natural gas can flow both directions. The pipeline will run from Jauniūnai natural gas compression station (GCS) in eastern Lithuania to the Hołowczyce GCS station in eastern Poland.
The energy islands of Denmark are two large-scale offshore wind farm projects that the government of Denmark is planning to establish, in the North Sea and the Baltic Sea respectively, by 2030. In the North Sea, an artificial island will be constructed with the capacity to serve as a hub for up to 3 GW of offshore wind farms initially, and potentially up to 10 GW in the future. The artificial island may take the form of a sand island, steel platforms, or a large container lowered into place and filled with stone material, and would be located approximately 80 kilometres (50 mi) west of Jutland, at a water depth of 26–27 metres (85–89 ft). In the Baltic Sea, a hub will be built on the natural island of Bornholm that will be able to serve up to 3 GW of offshore wind farms.
↑ Shotter, James (9 June 2020). "Polish gas network close to fully financing Baltic Pipe to Norway". www.ft.com. Archived from the original on 22 July 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
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