The Polish and Slovak gas transmission system operators Gaz-System and Eustream have made final investment decision (FID) for the proposed Poland-Slovakia Gas Interconnection (PCI) project.

The FID follows signing of the Connection Agreement by the two parties for implementation of the PCI project.

The project is said to hold crucial part of the North South Gas Interconnections in Central Eastern and South Eastern Europe (NSI East Gas), Gaz-System said.

Expected to help enhance the regional security of supply and integration of the natural gas markets in the region, PCI project involves construction of a new cross-border pipeline which connects natural gas transmission systems of Poland and Slovakia.

Gaz-System CEO Tomasz Stepien said: “Positive investment decision on implementation of the PCI project, the Poland–Slovakia Gas Interconnection confirms the commitment of both TSOs in reaching the most important goals of the EU energy policy.”

Eustream CEO Rastislav Nukovic said: “Construction of this gas interconnector will increase regional energy security and create new natural gas trading opportunities to the benefit of European customers.”

Gaz-System said that the new gas interconnection will also enable diversification of the CEE region gas sources as it creates the link between the Polish and Slovak gas transmission systems.

Additionally, the project is expected to allow surrounding CEE countries to benefit from the direct access to different gas supply sources from the North.

The sources include fully operational LNG terminals at the Baltic Sea including Swinoujscie LNG, Klaipeda LNG via Gas Interconnection Poland-Lithuania (GIPL) and Norway (through the planned Baltic Pipe), as well as from the South, through the Slovakia-Hungary Interconnection and the planned Eastring pipeline.

Construction work on the project is set to commence in the second half of 2018 and will be completed by the end of 2021.

The project is backed by EU financial support under the Connecting Europe Facility (CEF) Programme.