The Baltic Pipe Project investment decision
Energinet and GAZ-SYSTEM expect to make the final investment decision by the end of 2018.
As one of the important preconditions for the final decision concerning the construction of the Baltic Pipe, market players had to confirm that there is sufficient demand for its capacity.
For this purpose, in mid-2017, Energinet and GAZ-SYSTEM launched the “Open Season” (OS 2017) procedure and invited market participants to submit binding bids for the available Baltic Pipe capacity offered under the procedure. Then, based on the assessment of the received bids and approval of the final capacity allocation, GAZ-SYSTEM and Energinet conducted economic tests to assess the profitability of the project (in accordance with the NC CAM regulation).
As the economic test outcome was positive and other conditions stipulated in the OS 2017 Rules and Regulations were met, GAZ-SYSTEM and Energinet were able to sign Capacity Agreements with market participants in January 2018.
The Capacity Agreements concluded under OS 2017 define the terms of provision of gas transmission services. The agreements will be binding for a period of 15 gas years starting from the launch of gas transmission through the Baltic Pipe.
It should be noted, however, that the final investment decision also depends on other conditions precedent set forth in the Capacity Agreements signed under the Open Season 2017 procedure.