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A Geopolitical Energy Grenade In Europe

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Post-Soviet States Draw Closer on Energy Issues

Twenty years after the collapse of the USSR, former Soviet-dominated states are forging bilateral energy relations.

Poland and Lithuania are jointly constructing a new natural gas connection pipeline and a liquefied natural gas terminal in Swinoujscie for future trade.

The new projects are included in Poland’s Gaz-System investment strategy for development by 2020, with investments for the period 2015-18 alone estimated at $1 billion, according to the Gaz-System target to construct gas pipelines and interconnectors within the framework of the larger European energy north-south corridor, the Polska Agencja Prasowa news agency reported.

The proposed energy transit corridor will connect the Polish LNG terminal under construction in Swinoujscie in northwestern Poland with the Czech Republic, Slovakia and Hungary with a planned LNG Adria terminal in Croatia on the Adriatic. The concept of the line is to help ensure energy security for central and eastern European states.

To that end, Poland has finished constructing a natural gas interconnector with the Czech Republic in Cieszyn; while its initial capacity is minor at present, it will be upgraded.

Gaz-System is also investigating the possibility of building a natural gas pipeline connection to the Slovak Republic.

Investigating future energy options, Gaz-System is also considering possible investments in shale gas exploitation.

By. Joao Peixe, Deputy Editor OilPrice.com



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