Transmission system operator Energinet.dk, Polish oil and natural gas enterprise PGNiG and Gaz-System have entered into a co-operation agreement for implementing the Baltic Pipe project.

The final decision to implement the Baltic Pipe project is expected to be made in 2008. However, the physical framework of the project will not be laid down until all the necessary permissions have been obtained. The project must be approved by the supervisory boards of all three enterprises and the respective energy ministers.

The Baltic Pipe project is closely linked to another ongoing project, Skanled, in which Energinet.dk and PGNiG, together with a number of other participants, are analyzing the possibilities of transmitting Norwegian natural gas to Norway, Sweden and Denmark via an offshore pipeline. The Baltic Pipe will make it possible to transmit Norwegian gas to Poland and to trade gas between Poland and Denmark.

The co-operation agreement is a natural consequence of the letter of intent signed by Energinet.dk and PGNiG concerning the construction of the Baltic Pipe.

Peter Jorgensen, vice president of planning at Energinet.dk, said: The Baltic Pipe will be constructed to handle flow in both directions and will increase Denmark’s security of gas supply and increase competition on the gas market to the benefit of the consumers.

Both the Skanled and the Baltic Pipe projects are the natural consequences of Energinet.dk’s social responsibility for ensuring the security of supply and a properly functioning gas market. When the Danish gas production in the North Sea starts to decline after 2010, it will be necessary to expand the gas infrastructure to provide access to new gas reserves.