EIB supports extension of Poland’s gas transmission network

PRESS RELEASE

BEI/14/138

Luxembourg, 17 June 2014

EIB supports extension of Poland’s gas transmission network

The European Investment Bank (EIB) is lending Poland 410 million (EUR 98 million) to the Polish gas transmission operator GAZ-SYSTEM S.A. for the expansion of a gas pipeline in western Poland, from Lwówek to Odolanów. This project, with total approved financing of PLN 500 million (EUR 120 million), will reinforce the EU North-South gas corridor and the connection to alternative sources of gas supply.

The construction of the Lwówek - Odolanów gas pipeline is a crucial to enhancing the security, reliability and flexibility of the operation of the gas transmission system in Poland and neighbouring countries. It will cater for better network coordination and reliability, as well as eliminating bottlenecks in the system. The pipeline will offer the possibility of transporting increased gas volumes domestically, including from the LNG terminal in Świnoujście, through the Polish transmission system, to the borders with the Czech Republic, Slovakia and Ukraine. The Lwówek - Odolanów gas pipeline will have a diameter of 1000 mm and a length of approx. 170 km. Its construction is expected to be completed by 2017.

László Baranyay, EIB Vice-President responsible for lending in Poland, said: “The EIB, the bank of the EU, strongly promotes the diversification and security of the energy supply. We therefore particularly welcome this agreement with GAZ-SYSTEM, as the project will add capacity and robustness to the existing Polish gas transmission system and allow better connectivity to new gas supplies. Together with other projects previously financed by the Bank in Poland, this marks an important step towards better security of the energy supply in Europe. At the same time, this loan confirms the contribution of the EIB to the modernisation of the Polish energy sector, necessary for the successful economic development of the country”.

Jan Chadam, President of the Management Board of GAZ-SYSTEM, commented: “This is yet another project loan granted to GAZ-SYSTEM by the EIB to implement investment projects which are not only key from the point of view of our country but also play an instrumental role in the development of the integrated gas network in Europe. The EIB therefore supports our common goal of improving European energy security, building on the principles of solidarity and community of economic goals”.

This project is a continuation of the EIB’s successful cooperation with GAZ-SYSTEM. Including the current operation, the Bank has made available three loans to the company totalling some EUR 405 million to support investments in the expansion of the Polish gas network, including several sections of natural gas transmission system in north-western and central Poland and the construction of the LNG terminal in Świnoujście. The Bank’s loan provides high financial value added to GAZ-SYSTEM by making available long-term financial resources at a lower funding cost.

Background information:

The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2013, EIB financing in Poland amounted to EUR 5.7 billion.

Press contact:

Alicja Chytla, a.chytla@eib.org , tel.: +352-4379-88233

Website: http://www.eib.org/press − Press Office: +352 4379 21000 - press@eib.org