Gaz-System, the Polish state-owned company responsible for the operation and expansion of the gas transmission network in Poland, and Lithuanian company Lietuvos Dujos have signed an agreement on conducting a feasibility study for a natural gas pipeline between the two countries.

The study will be carried out by ILF Consulting Engineers Polska, which has won the tender for the project. The study is due to be ready in the first quarter of next year.

Several months ago, Ernst & Young Business Advisory completed a costs analysis of the construction of the gas pipeline between Poland and lithuania. Preliminary estimates indicate that the gas pipeline could be 562 kilometers long and capable of pumping up to 2.3 billion cubic meters of gas annually to the Baltic states. The project would cost 471 million euros (zl.1.96 billion), of which around 73 percent would be provided by Poland because the pipeline stretch on its territory would be much longer than that in Lithuania.