DONG and POGC Reaffirm Pipeline Commitment

Today, DONG and the Polish gas company, POGC, have signed a protocol about the further co-operation regarding the establishment of a gas pipeline, BalticPipe, between Denmark and Poland.

In continuation of the decision made by the Danish Minister of the Environment to have the Danish landfall of the pipeline at Avedoere Holme close to Copenhagen, the companies will continue the work of obtaining all necessary authority approvals. At the same time, the technical preparations will be continued so that the construction work can be initiated at short notice.

Prior to the commencement of the construction work, however, the parties want time to investigate the opportunities of collaborating with other companies/consortia to strain every nerve into establishing only one gas pipeline across the Baltic Sea. First and foremost, the parties want to proceed with the investigation of the opportunity of linking the BalticPipe project to the so-called Baltic Gas Interconnector project.

New Polish calculations seem to indicate that the Polish demand for natural gas is somewhat below the figures that formed the basis for the decision made in the summer 2001 concerning the establishment of the BalticPipe project. During 2002 the parties will therefore clarify the gas quantities required for transportation through the pipeline. Among other things, this depends on the interest of other partners in joining the project. The transportation of i.a. Norwegian gas through Baltic-Pipe will influence the extent and the finance of the project substantially.

Procurement of pipes and equipment for the BalticPipe has thus been deferred until the necessary conditions have been fulfilled and the BalticPipe can therefore not be put into operation until 2005 at the earliest.