Baltic Pipe Project: Deal agreed to build gas pipeline under sea between Denmark and Poland

A major project to transport natural gas from the North Sea to Denmark and Poland has taken a significant step forward.

On Monday, Italian firm Saipem signed a deal worth €280 million to build a gas pipeline under the Baltic Sea to connect the two countries. Poland imports most of its natural gas from Russia and the new pipeline has been hailed in Warsaw as a way of reducing dependence on Moscow.

The EU has provided €215 million in funding for the Baltic Pipe Project, which will also allow Poland to supply gas to the Danish market. Poland’s president, Andrzej Duda, has said the pipeline is scheduled to be launched on October 1, 2022. The total section underneath the Baltic Sea between Poland and Denmark is around 275 kilometres long, according to Saipem. The Baltic Pipe Project says the building of the pipeline will contribute to reducing carbon dioxide emissions and improving air quality in Poland.

The new agreement was announced, despite a crash in the price of oil and gas in recent weeks during the coronavirus pandemic. Constructors of the Baltic Pipe say the project is “entirely different” from Nord Stream 2, another natural gas pipeline that connects Russia and Germany across the Baltic Sea. But the announcement by Warsaw does appear to signal Poland’s intentions of becoming a regional gas hub for Europe. The capacity of the new pipeline will be 10 billion cubic metres each year, which reportedly exceeds Poland’s domestic needs.

Source: Euro News