Brief project description
The main aim of the project is further enhancement of the interconnectivity and integrity of the regional markets through establishing a new bidirectional pipeline connecting Polish and Ukrainian gas transmission networks. The pipeline will connect Hermanowice node on the Polish side with Bilche Volytsia UGS on the Ukrainian side.
The main goals of the project are as follows:
1. the increase of security and stability of cross-border gas transmission between Poland and Ukraine;
2. the decrease of vulnerability of Poland and Ukraine in case of supply disruptions from Russia;
3. diversification of gas sources and routes for the CEE region by enabling the access to:
• the global LNG market (via LNG terminal Świnoujście, LNG terminal Krk, LNG terminal Constanta);
• unconventional gas in Poland;
• storage infrastructure in Poland;
• European gas market (gas spot markets in Western Europe);
• existing/planned infrastructure in Southern Europe;
4. integration of the gas infrastructure in Ukraine and the EU through creation of a competitive gas market;
5. the access to the gas storage infrastructure in Ukraine;
6. contribution to economic growth of the region:
• by a large scale direct investment in infrastructure;
• by enhancing the economic activity of natural gas trading and consequently decreasing the price of natural gas;
• by protecting industry from the adverse economic effects of an eventual supply shortage or forced fuel switching;
• by providing a basis for new developments in the region, providing social benefits in the region through avoidance of supply cuts for protected residential consumers and important industrial undertakings;
• new employment through direct employment and indirect vacancies;
7. the possibility to export of gas through the Ukrainian transmission system to Moldova and Romania.
The commissioning of the project will contribute towards enlarging the area covered by the North-South corridor via stronger integration of Ukrainian transmission network with the CEE Region. This is of crucial importance in particular, as Ukraine is a country that plays a vital role for a secure functioning of the gas markets in the CEE region due to its significance in terms of gas transit from Russia. The project will also largely increase the volume of an integrated gas market in the region. Such scale effect should positively influence the competition and attractiveness of the region towards upstream players and shippers. In addition, the market potential of the CEE region will grow significantly thanks to interconnected gas markets and will create a possibility of new gas flows between the concerned countries.