Warsaw — Poland’s gas grid operator Gaz-System agreed to buy a set of compressor units for 550 million zlotys ($141 million) from U.S. company Solar Turbines for its planned link to Norway’s gas fields, it said on Wednesday.
The east European country sees the connection, known as the Baltic Pipe, as a way to diversify its gas supply, most of which is currently imported from Russia under a long-term contract with Gazprom that expires in 2022.
The Baltic Pipe, as well as increased supplies of liquefied natural gas (LNG) via a Baltic Sea terminal at Swinoujscie, are designed to help Poland replace the Russian deliveries.
“The contract with the American supplier of key machinery for the three compressor stations located in Poland constitutes yet another milestone achieved by Gaz-System under the Baltic Pipe Program,” Gaz-System Chief Executive Tomasz Stepien told a press conference.
Poland’s government official responsible for key energy infrastructure Piotr Naimski, also speaking at the conference, said the Baltic Pipe project was well on track to be completed in October 2022, as planned.
“The Law and Justice government considers this investment as one of the most important for Poland,” Naimski said.
Poland uses around 17 billion cubic metres (bcm) of gas a year and imports more than half of that from Gazprom.
The capacity of the 1.6 billion euro Baltic Pipe, which will connect Poland with the Norwegian system via the Baltic Sea and Denmark, will be 10 bcm a year, while Swinoujscie LNG terminal is due to expand annual capacity to 7.5 bcm from 5 bcm by 2021. ($1 = 3.8931 zlotys)