GIPL Gas Pipeline Launched between Poland and Lithuania

Gas pipeline GIPL (Gas Interconnection Poland—Lithuania), connecting Poland and Lithuania, began work today, May 1, Nemunas Biknius, CEO of the Lithuanian gas network operator Amber Grid, said. The new gas pipeline will provide access to liquefied gas from the floating terminal in Klaipeda, which Poland will be able to import via the pipeline and tankers.

The Trade Between Poland and Lithuania:

The total capacity of the terminal in Lithuania is 4 cubic meters per year, of which the Polish side can use 1.9 billion cubic meters. “The gas pipeline has started working. This is a special event within the framework of achieving energy independence not only for our countries but for the entire region, including both the Baltics and Finland.

Today, gas is transported through it to Poland, but depending on the needs, it can go in both directions – both to Poland and to Lithuania from Poland. A reliable infrastructure of the link will ensure the possibility of a constant exchange of natural gas,” Mr. Biknius stated on the company’s website.

Thanks to the new gas pipeline, 230 thousand cubic meters will be supplied per hour to Poland (2 billion cubic meters per year) and 217 thousand cubic meters per hour in the direction of Lithuania (1.9 billion cubic meters per year). The technical capacity in the direction of Poland and Lithuania will be 2564 MWh from May 1 to September 30, 2022.

In the opposite direction, the capacity continuously will be 2419 MWh. Earlier, Poland refused to pay for gas in rubles, as required by Russia under the decree of President Vladimir Putin. After that, Gazprom stopped gas supplies to this country.

Business Implications for Poland

Economic and regulatory developments in Poland have broad implications for businesses operating in the country. Poland’s economy, the largest in Central and Eastern Europe, continues to attract international investors and entrepreneurs seeking EU market access, competitive costs, and a skilled workforce of over 17 million workers.

For foreign companies and entrepreneurs doing business in Poland, staying informed about economic trends, regulatory changes, and market dynamics is essential for strategic decision-making. Whether you are considering entering the Polish market, expanding existing operations, or optimizing your corporate structure, professional advisory support can help navigate the complexities of the Polish business environment.

Poland offers a comprehensive business infrastructure including special economic zones with tax incentives, a well-developed banking system, modern office space in major cities, and a legal framework aligned with EU standards. These factors, combined with Poland’s strategic geographic position between Western and Eastern Europe, make it an attractive hub for businesses targeting the broader European market.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our corporate tax advisory, or contact us for a free consultation.