Poland's Gaz-System Reaches $306 Million Pipeline Deal with Saipem

GDANSK/WARSAW (Reuters) - Polish gas grid operator Gaz-System said on Monday it has signed a 280 million euro ($306 million) contract with Italian oil services group Saipem to build a section of the Baltic Pipe between Denmark and Poland.

The Castorone, which completed Norway's 176-mile Johan Sverdrup pipeline in 2019. (photo: Saipem).

Warsaw views the planned link as a way to diversify its gas supply, most of which is imported from Russia under a long-term contract with Gazprom that expires in 2022.

The contract, signed with Saipem's British subsidiary, includes the construction of a concrete-coated pipeline between Denmark and Poland, microtunneling and civil works, which Saipem said in a statement would commence immediately.

The capacity of the 1.6 billion euro Baltic Pipe, which is expected to connect Poland with Norwegian gas fields via the Baltic Sea and Denmark in October 2022, will be 10 Bcm a year.

"We have already contracted all major contractors and suppliers necessary to start the construction of the gas pipeline connecting the coasts of Denmark and Poland," the head of Gaz-System Tomasz Stepien, said in a separate statement.

Elsewhere in the Baltic, a special pipelaying vessel that could be used by Russia to complete construction of the Nord Stream 2 gas pipeline to Germany has arrived in the Baltic Sea, a Reuters witness said on Sunday.

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