New Polish Govt May Question PGNiG Investments - Report
by AFX News Limited
October 26, 2007
Poland's new government is likely to look closely at investments by gas monopoly PGNiG in a liquefied natural gas plant on the Baltic coast as well as North Sea oil and gas deposits, an official from the Civic Platform party said.
Adam Szejnfeld, head of parliament's economy committee before the Platform
won elections last Sunday, told Parkiet business daily the party was concerned
whether the return on the North Sea investments justified the cost.
The paper added that officials are concerned PGNiG's planned LNG plant has
not put signed supply deals for the gas the plant needs and will struggle to buy
it on the open market.
PGNiG plans to build an LNG terminal in Swinoujscie on the Baltic coast by
the end of 2011 and will buy 2.5 billion cubic meters of liquefied gas per year as part of Poland's strategy to limit its dependence on imports from Russia.
Polish media report the company may borrow around US$800 million to finance oil and gas exploration activities off the Norwegian coast after it bought concessions earlier this year.
Copyright 2007 AFX News Limited. All Rights Reserved.
Polskie LNG (PLNG)
PGNiG SA (Polish Oil & Gas Co.)