EU funds help put more energy projects in the pipeline

The Ministry of Regional Development and the Economy Ministry have agreed on the details of the Infrastructure and Environment Operational Program (POIŚ). Over EUR 26 (zł.103) billion - including EUR 21.2 (zł.84.2) billion from EU funds - will be dedicated to the program, within which some EUR 1 (zł.4) billion will fund projects aimed at shoring up Poland's energy security.

"The actions within the program are connected with the plans to diversify gas and oil sources. We want the government to end its term with a number of completed projects that would for good place Poland on the list of countries that enjoy energy security," says Economy Minister Piotr Woźniak.

Competitions will be held to decide smaller investments within the POIŚ, but apart from those the Ministries have already outlined several larger key projects. The Polish Oil and Gas Company (PGNiG) is responsible for a EUR 14 (zł.56) million liquid-gas terminal. According to Woźniak, by the end of the year the company will have the necessary documents.

Despite many local and foreign voices against the project, the Minister wants to co-finance the construction of four out of 10 planned gas warehouses with EUR 256 (zł.1,017) million.

Some EUR 480 (zł.1,907) million will go for the modernization and construction of a transmission and distribution network, which the government sees as essential for the development of the gas market in Poland.

The Ministry also wants to build the long-planned extension of the Odessa-Brody oil pipeline from Brody to Płock. At the Krynica Economic Forum, Prime Minister Jarosław Kaczyński and Ukraine's Prime Minister Viktor Yanukovich reached an agreement to cooperate on the project, on which the Ministry plans to spend some EUR 500 (zł.1,986) million.

Economy Minister Woźniak has already signed an letter of intent with the Lithuanian government to link and integrate the two countries' electricity networks. This will cost some EUR 654 (zł.2,597) million.

"All the projects are worth some EUR 2 (zł.8) billion, which means that the Polish contribution is planned for EUR 800 (zł.3,178) million," says Woźniak.

The government also wants to increase the use of domestic energy sources - such as coal - as well as renewable energies, including biofuels. At the same time, the government is aiming to decrease energy consumption in the state sector. Over EUR 620 (zł.2,463) million will be designated for these projects.