A significant project to transfer natural gas in the North Sea to Denmark and Poland has taken a substantial step ahead.
On Monday, Italian company Saipem signed a deal worth $280 million to construct a gas pipeline under the Baltic Sea to join the 2 nations.
Poland imports many of its gas from Russia as well as the new pipeline was hailed in Warsaw as a means of decreasing reliance on Moscow.
The EU has given $215 million in financing for its Baltic Pipe Project, which will also enable Poland to provide gas into the Danish sector.
“That is great news for Poland, rather than just in the not too distant future, but I profoundly consider for years,” stated Duda in a media conference on Monday.
“If we’re speaking about complete enlightenment of gas supplies to Poland, if we’re discussing complete liberty of Poland as a receiver from Russia, this is the landmark on the path to the non-dependence,” he further added.
The Baltic Pipe Project will be built to connect gas fields on the Norwegian shelf in the North Sea into Niechorze-Pogorzelica about the northwest coast.
The entire section beneath the Baltic Sea between Poland and Denmark is approximately 275 kilometers long, based on Saipem.
The Baltic Pipe Project states the construction of this pipeline will lead to reducing carbon dioxide emissions and improving air quality in Poland.
Saipem is anticipated to start work in Poland and Denmark in the second half of the season. The setting of offshore plumbing is afterward proposed for the summer of 2021.
The new arrangement was declared, despite an accident in the purchase price of gas and oil in recent weeks throughout the coronavirus pandemic.
What does this imply for Russia and the Nord Stream?
Constructors of the Baltic Pipe state the job is”completely different” from Nord Stream 2, yet another natural gas pipeline that links Russia and Germany throughout the Baltic Sea.
However, the statement by Warsaw does seem to indicate Poland’s goals of being a regional gasoline pulse for Europe.
The power of this new pipeline is going to likely be 10 billion cubic meters every year, which allegedly exceeds Poland’s national demands.
Poland still imports all its gas from Russia but has taken measures to reduce this dependence to prevent expanding its long-term deal with the Russian firm, Gazprom, which is scheduled to expire in 2022.
Moreover, the Baltic Pipe could serve as a key associate of this north-south corridor from the European Union, within the Three Seas Initiative.
Meanwhile, the contentious Nord Stream 2 pipeline was created by Moscow to boost gas supplies to Germany, Russia’s largest energy client.
The job was only weeks away from completion in 2019 until US sanctions threatened to stop work over the final remaining part in Soviet waters.
Last week, a Russian boat anchored in Kaliningrad after sailing for 3 months by the Pacific to help complete construction.