Polish natural gas grid operator Gaz-System signed a €280 million ($306 million) contract with Italian oil services group Saipem to build a section of the Baltic Pipe between Denmark and Poland, the company announced Monday.
The scope of this contract covers also the landfall section where the offshore section will be connected with onshore components in Poland and Denmark.
"Baltic Pipe, the project that is key for Poland's energy security and of importance to the European Union, is being implemented in strict accordance with the adopted schedule. Gas transmission from the Norwegian shelf to Poland along this new route will start on 1st October 2022," said Piotr Naimski, Poland's secretary of state at the Chancellery of the Prime Minister, the Governmental Plenipotentiary for Critical Energy Infrastructure.
Last year, the European Commission, under the Connecting Europe Facility (CEF), granted nearly €215 million for the construction of the Baltic Pipe out of EU support to the tune of €266.8 million.
The Baltic Pipe project has already been recognized by the European Commission as a "Project of Common Interest" (PCI) four times and has held this status since 2013.
According to Saipem's schedule, first works will commence in the second half of this year, and will consist of preparations for the landfall sites in Poland and Denmark as well as construction start for the necessary microtunneling.
It is also expected that the second half of this year will see the start of activities at sea, including the launch of the pipeline pre-lay route surveys.
Vessels preparing the seabed for pipeline installation will mobilize in the Baltic in the first half of next year with the start of pipelaying planned for the summer. The pipeline handover for operation is planned for October 2022.
By Murat Temizer