Poland, Lithuania pace up gasoline hyperlink amid Russia provide worries

Floating storage regasification unit (FSRU) “Independence” is docked on the liquefied pure gasoline (LNG) terminal in Klaipeda port October 27, 2014. REUTERS/Ints Kalnins

VILNIUS/WARSAW, Feb 28 (Reuters) – A pure gasoline pipeline referred to as GIPL linking Poland and Lithuania will open on Might 1, sooner than the scheduled mid-2022 begin, linking the Polish grid with a path to a liquefied pure gasoline (LNG) terminal in Lithuania.

The sooner begin was introduced after Russia’s invasion of Ukraine on Thursday gave rise to worries that Russian gasoline provides to Europe may very well be reduce.

Poland and Lithuania had been an discussing early begin to the mission for weeks amid the fears of vitality provide disruption, senior authorities sources instructed Reuters.

“Through the geopolitical tensions, linking the Baltic and Finnish gasoline markets with the European gasoline market ensures vitality safety and independence for the complete area,” Lithuanian Power minister Dainius Kreivys mentioned in an announcement.

GIPL will enable Poland to spice up LNG imports and to ship gasoline to the Baltic states to clean out any interruptions.

The pipeline, designed to have a capability to ship about 2.4 billion cubic meters of gasoline per yr in each instructions, was financed by the European Union to assist Poland and the Baltic states increase provide safety.

“Extra gasoline provide sources will make sure the safety and reliability of gasoline provide, and can open alternatives for the Klaipeda LNG terminal,” mentioned Kreivys.

The Lithuanian LNG terminal is supplying gasoline to Finland since final yr, when gasoline hyperlink to Estonia ended Russian provide monopoly.

Russia’s Gazprom provides half of Poland’s 20bcm gasoline consumption, however the long-term contract expires on the finish of this yr and Warsaw does not plan to resume it.

The nation goals to exchange these provides with shipments by way of Baltic Pipe, linking Poland with Norway from the autumn of 2022.

The Baltic States of Latvia, Lithuania and Estonia have been as soon as dominated from Moscow however now are a part of each NATO and the EU.

Baltic officers mentioned that Incukalns gasoline storage in Latvia and the LNG import facility in Lithuania give cheap safety towards gasoline provide disruptions from Russia.

Latvia ordered further LNG into Incukalns final week to safe the nation’s gasoline provide.

AUCTIONS IN APRIL

The primary auctions can be held in April for capability to ship the gas out there in both course from Might to September, Polish grid operator Gaz System mentioned.

The technical capability for transit from Poland to Lithuania will quantity to 2,564,500 kilowatt-hours per hour and interruptible capability from Lithuania to Poland at 2,419,550 kWh/h in the course of the interval, Gaz System mentioned.

That might enable the cargo of 173 million cubic meters of gas monthly from Lithuania to Poland and, 164mcm/month in the wrong way, in line with Reuters calculations.

Reporting by Andrius Sytas in Vilnius and Marek Strzelecki in Warsaw, modifying by Terje Solsvik, William Maclean

Our Requirements: The Thomson Reuters Belief Rules.