EU approves EUR 390m aid for Polish gas project
The European Commission has authorised, under the EU state aid rules, the provision of state grants amounting to EUR 390 million for the construction or capacity increase of four underground gas storage sites in Poland.
Gas storage enhances security supply and enables a country to deal with supply disruptions or seasonal variations in consumption. The projects, which are open to all operators at regulated conditions, are in line with the EU state aid rules.
"This project will allow Poland to increase security of gas supply to the benefit of its citizens, without unduly distorting competition as the gas storage capacity will be made available to all competitors on the Polish market," said Competition Commissioner Joaquín Almunia.
In November 2009, Poland notified to the Commission its intention to grant state aid totalling 1.539 million Polish Zloty (around €390 million) to Polskie Gornictwo Naftowe i Gazownictwo S.A. for four projects aimed at increasing the capacity of underground storage sites in Strachocina (Carpathian region), Wierzchowice, in Silesia, and Mogilno (Kuyavian-Pomerania) and the construction of new underground gas storage in Kosakowo (on the Baltic coast). Polskie Gornictwo, a State-owned company, is the main player in the gas market in Poland.
The project is expected to be completed in 2015, increasing Poland's storage capacities from 1.6 billion m³ to 2.6 billion m³. This will bring the country closer to the current EU reserve capacity average of 14% of annual demand.
The Commission focused its competitive assessment on the positive contribution of the projects to an improved security supply in Poland and in the EU. The aid amount corresponds to the financial needs and the low financial attractiveness of the projects.
The projects will increase the overall storage capacity available in Poland, thereby enabling all market players, not only the beneficiary of the aid, to better meet mandatory reserves.
Background
Security of gas supply is the objective of Council Directive 2004/67/EC and increasing storage capacity is one of the instruments expressly included in the Directive to achieve it. At present, 21 Member States use gas storage to maintain their security of supply.