Foto: AS “Conexus Baltic Grid” īpašums

“OP Corporate Bank plc” issues a guarantee of EUR 16 million to JSC “Conexus Baltic Grid”

[12.05.2021]

The Latvia branch of “OP Corporate Bank plc” continues cooperation with the unified natural gas transmission and storage operator in Latvia, JSC “Conexus Baltic Grid”, by signing a guarantee agreement of EUR 16 million in order for JSC “Conexus Baltic Grid” to ensure fulfilment of the financial obligation within the implementation of the Gas Interconnection Poland-Lithuania (GIPL) project.

The Poland-Lithuania gas pipeline will make a significant contribution to the development of the energy infrastructure of the region by providing all countries involved in the project with access to the interconnected European gas system. The gas pipeline will be the first gas interconnection between the Baltic states and continental Europe.

Elmārs Prikšāns, General Manager at “OP Corporate Bank plc” Latvia branch, stated, “Energy independence and diversification of energy resources will be a significant base for the long-term development of the national economy. We are honoured to cooperate with JSC “Conexus Baltic Grid” and be part of this infrastructure project that will be important for the whole Baltic region and provide grounds for the energy independence and economic development of the region. All Baltic states will benefit from this.”

Board Member of JSC “Conexus Baltic Grid”, Mārtiņš Gode acknowledges, “The Poland-Lithuania interconnection, which is scheduled to start operating in 2022 and connect the Baltic and Finnish natural gas transmission systems with the natural gas infrastructure of continental Europe, will be a significant alternative for natural gas transmission to the Baltic states. At the same time, this will increase the role of the Inčukalns gas storage facility by making it accessible to a wider range of European gas merchants.”

The length of the gas pipeline which will connect Poland and Lithuania is planned to reach 508 km, 165 km of which will pass through Lithuania, and 343 km – Poland. The total costs of the project are estimated to be EUR 558 million.

JSC “Conexus Baltic Grid” is the unified natural gas transmission and storage operator in Latvia. The company oversees a 1188 km-long natural gas transmission pipeline in Latvia, as well as one of the most modern underground gas storage facilities in Europe – Inčukalns underground gas storage.

“OP Corporate Bank plc” is the bank of the largest Finnish financial services group, and its Latvia branch has been operating since 2012. The branch of the JSC “Conexus Baltic Grid” bank acquired the right to issue guarantee in the procurement procedure by submitting the most economically advantageous proposal. “OP Corporate Bank plc” has been cooperating with JSC “Conexus Baltic Grid” ever since “OP Corporate Bank plc” was established in 2017.