Gazociagow Przesylowych Gaz-System has signed a 2.2 billion Polish zloty ( US$616 milllion ) financing for the construction of the Gdansk-Gustorzyn gas pipeline, a key energy infrastructure project in Poland spanning approximately 250 kilometres.

The financing was provided by Bank Gospodarstwa Krajowego ( BGK ), Poland’s state development bank, using funds from the National Recovery Plan, which forms part of the European Union‘s Recovery and Resilience Facility under the broader NextGenerationEU programme, aimed at supporting economic recovery in the wake of the Covid-19 pandemic. Norton Rose Fulbright advised Gaz System.

The loan will support the expansion of Poland’s national transmission system, enabling the efficient distribution of gas from the Gdansk area to customers both in Poland and across the region, including the Baltic states and Central and Eastern Europe.

The Gdansk-Gustorzyn pipeline will have a transmission capacity of up to 1.32 million cubic metres per hour.

Gaz-System is responsible for the transmission of natural gas, and owns the LNG terminal in Swinoujscie. As part of its 2015–2025 investment programme, it has developed over 2,000 kilometres of new pipelines across Poland.

Key projects included the Baltic Pipe ( linking Poland and Denmark ) and gas interconnectors with Lithuania and Slovakia. It is also building the FSRU terminal in the Gulf of Gdansk along with the transmission infrastructure.

"The financing was notable not only for its scale and purpose – supporting the development of a key section of the national gas transmission system – but also for being based on funds from the National Recovery Plan," comments Jacek Smardzewski, the Norton Rose Fulbright counsel leading the deal. "This transaction demonstrates how EU funding can be effectively deployed in cooperation with Bank Gospodarstwa Krajowego to support critical infrastructure investments."