CEF Energy: enhancing energy security in the Eastern Baltic Sea region

In the quest for energy security and sustainable development, the European Union has been actively investing in energy infrastructure projects under the Connecting Europe Facility for Energy (CEF Energy) since 2014, with the aim of building a European interconnected energy network, diversifying energy sources and contributing to the clean energy transition and to decarbonisation. 

On the occasion of the 10^th anniversary of the CEF Energy programme, we want to put the spotlight on projects supported by this funding instrument that stand out as a crucial link in strengthening the energy landscape of different regions, such as the Gas interconnector Poland-Lithuania, a strategic initiative enhancing energy security. 

GIPL - the Gas Interconnection Poland-Lithuania

The Gas Interconnection Poland-Lithuania (GIPL) stands as a landmark project in Europe's pursuit of energy security and integration. The GIPL is the first gas pipeline connecting Lithuania and Poland and the first gas interconnector between the Eastern Baltic Sea region and Continental Europe, thereby further integrating the Baltic States into the EU’s internal energy market. It also increases the possibilities of using the Klaipėda LNG terminal in Lithuania and the Świnoujście LNG Terminal in Poland.

It consists of a 700 millimetres diameter pipeline with a total length of approx. 508 kilometres, including 343 km in Poland and 165 km in Lithuania, as well as supporting infrastructure in both countries (including a gas pressure reduction and metering station in Lithuania and a new compressor station in Poland). 

CEF Energy funding for crucial components

The project obtained the status of a Project of Common Interest (PCI) for its role in ensuring energy supply security in the region, which allowed it to obtained co-financing under CEF Energy in the form of a grant for studies (EUR 5,7 million) and a grant for works (EUR 266 million). The capitalisation of the project amounted to approximately EUR 500 million, where 60% of the support was provided by the European Union.

The EU funding contributed namely to build infrastructure: on the Polish side, the gas pipeline between Hołowczyce (PL) and the PL-LT border, the compressor station in Gustorzyn; and on the Lithuanian side, the gas pipeline between the PL-LT border and Jauniunai (LT) and the gas pressure reduction and metering station located near the PL-LT border. 

The implementation of the project established the transmission capacities between the countries up to 74 GWh/d in the direction from Poland to Lithuania and up to 58 GWh/d in the direction from Lithuania to Poland.

The impact and benefits

Since its commissioning in May 2022, the GIPL is bringing socio-economic benefits to the three Baltic States and Finland. It has contributed to ending their gas isolation, to further diversifying gas sources and routes, to increasing their security of gas supply, and to reducing the dependence on a single supplier.

In addition, the GIPL pipeline contributes to a more sustainable energy landscape by enabling the use of cleaner natural gas over more polluting energy sources. This shift aligns with the EU’s broader goals of reducing greenhouse gas emissions and combating climate change.

Conclusion

The GIPL project is a positive example of the power of regional cooperation, facilitated by the CEF Energy programme. By bridging the gap between the gas networks of Poland and Lithuania, the project fostered closer ties and collaborative efforts among the Baltic States and Central Europe.

CEF Energy funding has been a crucial for the successful development and implementation of the gas pipeline. By providing essential financial support, mitigating risks, and fostering regional cooperation, CEF Energy has ensured that the GIPL project not only enhances energy security and market integration but also drives economic growth and environmental sustainability. The GIPL pipeline exemplifies how strategic funding and collaborative efforts can transform regional energy landscapes, paving the way for a more secure and sustainable future.