Baltic Pipe: Gaz-System signs a contract to supply pipes for the Polish section of the Baltic Pipe

DZP is advising OGP Gaz-System S.A. on a strategic infrastructure project to create a new gas supply corridor on the European market. The project will significantly improve Poland's energy security.

On 9 January 2020, Gaz-System signed a contract with the German company Europipe GmbH for the supply of pipes for the Polish section of the Baltic Pipe. The contract covers the supply of pipes for the construction of a 275 km long offshore section and a short onshore section leading to the receiving terminal. The pipes will be shielded with an appropriate protective coating. Under the contract, Europipe will also provide temporary storage for the pipes and transport to a receiving point indicated by the pipeline contractor, to be selected by Gaz-System in the first half of 2020 in a separate procurement procedure.

As part of its legal advice, DZP provided comprehensive support to Gaz-System in the procedure to select a pipe supplier for the construction of the Baltic Pipe and in preparing the pipe supply contract, which was concluded with the entity selected in the procedure.

“Thanks to the contract being signed for the supply of pipes according to the assumed project schedule, construction of the Baltic Pipe section connecting Denmark and Poland can be started in 2020. Completion of this investment in 2022 is of strategic importance to the Polish gas system given the planned expiry of the long-term gas supply contract with GAZPROM at the end of this year.” added Katarzyna Kuźma, who heads the work of the public procurement team.

“In our advisory services, we used legal solutions that have not to date been used in Poland in such large infrastructure projects, namely contracting a supplier of pipes for the gas pipeline based on international LOGIC standard form contracts.” said Paweł Grzejszczak, Partner in the Infrastructure & Energy Practice, responsible for drawing up the draft supply contract and supporting Gaz-System in negotiations with procedure participants.

The client was advised by a team of lawyers from Infrastructure & Energy Practice: Paweł Grzejszczak, Partner (contractual aspects), Katarzyna Kuźma, Partner, Wojciech Hartung, Counsel, and Weronika Jędrzejewska, Associate (procurement aspects). The team was supported by Julita Zimoch-Tuchołka, Partner in the Corporate and M&A Practice (insurance aspects), Artur Nowak, Partner and Jan Czerwiński, Senior Tax Manager in the Tax Practice (tax aspects).