The final investment decision (FID) for the natural gas pipeline project between Denmark and Poland, the Baltic Pipe, is expected no later than December 2018, according to Jeppe Dano, marketing director of the Danish national transmission system operator for electricity and natural gas, Energinet, on Monday.
Dano spoke during the 9th Baltic Energy Summit in Lithuania's capital Vilnius where he provided an update on the Baltic Pipe project noting that if the FID goes as planned, construction will start in 2020 and the project will deliver first gas in 2022.
He explained the new pipeline would provide Denmark and Poland direct access to Norway's gas fields.
The 6,800-kilometer-long pipeline will make it possible to transport gas from Norway to the Polish market through Denmark, as well as to customers in neighboring countries, such as Sweden.
Dano said that project would provide benefits in four geographical areas - Norway, Poland, Denmark and the European Union.
The project will also maintain low gas transmission tariffs as domestic Danish gas production and consumptions falls off in the coming years.
"For Polish players, it means increased security of supply and gas market competition," he said.
The project supports the goal of the EU Energy Union, he added.
"Direct access to new central and eastern European markets with forecasted additional gas demand is a benefit for Norwegian players," he said.
The Baltic Pipe project would expand Europe’s gas transmission capacity by up to 10 billion cubic meters of gas per year. In comparison, the total Danish gas consumption for 2016 was 2.5 billion cubic meters.
By Murat Temizer in Vilnius, Lithuania