The WAG Loop project is a key measure for ensuring energy supply security in Austria and across Europe. Due to the current geopolitical situation and the expiration of the gas transit agreement between Russia and Ukraine at the end of 2024, there is a continued risk of gas shortages for Austria and the Southeast European region. As a first step (WAG Loop 1), a roughly 40-kilometre section from Oberkappel to Bad Leonfelden will be expanded with an additional pipeline running parallel to the existing one. This new line would increase transport capacity from Germany by around 30%, or 27 TWh per year, thereby improving access to gas sources from Northwestern Europe – such as Norway and LNG imported via terminals along the coasts of Germany, Belgium, the Netherlands, and France. In addition, the new pipeline could also be used in the future to transport climate-friendly hydrogen. The WAG Loop project therefore not only makes a crucial contribution to domestic supply security but also paves the way toward a green, sustainable future.
 

Immediately after the outbreak of the war, planning for the WAG Loop 1 project began. It was presented to the Federal Ministry for Climate Action (BMK) at the Ministry’s Gas Summit on June 22, 2022, and subsequently submitted as part of the Network Development Plan. The coordinated Network Development Plan was officially approved by E-Control in the summer of 2023. Shortly thereafter, Gas Connect Austria began implementing the project and has been pursuing it consistently ever since. The project schedule and timeline are known to E-Control and the relevant ministries. Key steps have already been taken, including a feasibility study with the determination of the optimal route, the identification of protection zones and sensitive areas along the pipeline corridor, as well as discussions with relevant stakeholders such as suppliers, political representatives, and engineering partners. GCA has already obtained written declarations of support and expressions of interest from several stakeholders. In addition, the application for approval under the Environmental Impact Assessment Act has already been submitted.

If a faster implementation—similar to gas infrastructure projects in Germany—were desired, appropriate acceleration legislation would need to be enacted. However, such measures are not currently under discussion in Austria. The current and ambitious project schedule aims for completion by 2027.

The next key milestones are the clarification of the overall financing of the project and the clarification of state aid law.

The next step is to check whether the provision of funds is unobjectionable under state aid law. Once this has been approved, the financing can be clarified and the decision on the FID can be made on this basis.

In 2024, Austria had an annual natural gas consumption of around 76 TWh. This was still primarily supplied via Ukraine and the Baumgarten hub, but also from the West. Since the end of 2024, gas flows via Ukraine have ceased, so alternative routes and storage facilities have had to take over the supply. Through Italy via the Trans-Austria Gas Pipeline, around 96 TWh can currently flow in reverse flow, and via the WAG in reverse flow (from Germany to Austria), about 90 TWh per year. Together, that totals 186 TWh. Austrian gas storage facilities have a capacity of about 90 TWh, with roughly half of that available for Austria. In addition, the expansion or construction of LNG terminals will enable new supply routes from the north or southeast.

Austria is embedded in a European gas network, which means that it can also be supplied via alternative routes. The European Commission's Security of Supply Regulation (SoS Regulation) stipulates that neighbouring member states must help each other in the event of a supply crisis. A solidarity mechanism stipulates that vulnerable customers must also be supplied across borders. So if there are extreme weather conditions (very cold, low water levels, little wind and sun for alternative energy production), storage reserves are already depleted and neighbouring countries also need to be supplied, it may be that the capacity currently available is not sufficient. In such an extreme case such as a gas shortage, the market would initially react with a significant increase in the price of gas (probably to a multiple of the normal price). The resulting additional costs to be borne by gas consumers would quickly exceed the current cost of WAG Loop 1 (around EUR 200 million). It therefore makes sense to expand the capacity of the WAG now and as a precautionary measure. The WAG Loop will help to avoid bottlenecks and price increases in extreme cases by increasing capacity in the west-east direction. In addition, the pipeline can also be used for hydrogen transport in the future.

The project is currently scheduled for completion in early to mid-2027. Gas Connect Austria is taking significant measures to meet this ambitious timeframe and facilitate swift implementation. However, the realisation of the project is also subject to numerous external factors that are beyond our control, including approval procedures, environmental impact assessments, negotiations for rights of way, and supplier availability and lead times. Austria does not have a law similar to the one in Germany that allows for accelerated construction of critical infrastructure.

Some parties are considering accelerating the WAG Loop 1 project and completing it by the first quarter of 2025. However, this is not feasible whilst adhering to the given framework conditions.

Gas Connect Austria immediately initiated the WAG Loop 1 project following its integration into E-Control’s long-term planning and has since been diligently working on the project, thus taking proactive measures.

From GCA's experience with other pipeline projects, it is unrealistic, as demanded by some, to complete the project by the first quarter of 2025. The necessary regulatory approval process alone takes at least one year. Prior to that, as part of the Environmental Impact Statement (UVE), approximately two vegetation periods are required to survey protected assets. Even with an extremely ambitious approach, the production and laying of steel pipes do not anticipate completion before the end of 2026.

A comparison in terms of timing with the construction of an LNG pipeline in Germany is also flawed since Germany specifically enacted the LNG Acceleration Act for its expansion, which includes exemptions for the Environmental Impact Assessment procedure (UVP), nature conservation laws, and similar regulations. Such measures were not initiated by the Austrian Ministry.

Gas Connect Austria operates independently from its owners when it comes to project design and financing, in compliance with unbundling regulations.
 

There is currently no delay in the WAG Loop – because, despite the current finalisation of the financing, GCA has been pursuing the WAG Loop from the beginning as if the outstanding final investment decision had already been made. Therefore, there will be no delay due to the financing! If, in exceptional cases (the last ones were 15 years ago), a compulsory granting of the servitude for the gas pipeline becomes necessary, a delay of several months cannot be ruled out.

The idea of laying a 110kV line in the Mühlviertel as an underground cable was evaluated years ago (link to regional conferences, pilot project: electricity supply). The result was that Netze Oberösterreich chose the option of an overhead line for the construction of this 110kV line and also (only) submitted and pursued this as a project. There is therefore no ‘110kV underground cable project’ in the Mühlviertel region with which GCA could hold any discussions on expert details (distances, compliance with standards, etc.).

GCA has always stated that it is open regarding an underground cable project and possible synergies, but has always emphasised that this must not lead to any delays for the gas pipeline and that the ambitious schedule to ensure security of supply has top priority.

To date, there is no ‘underground cable project’. If such a project should arise during the construction phase of the gas pipeline, GCA is - as always - open to discussions and possible cooperation during construction, as long as this does not delay the process.