10/20/2006

Poland looking for alternatives to Russian gas

Poland is not planning to take part in the project to build the North European Gas Pipeline (NEGP) along the bottom of the Baltic Sea, as the cost of joining it will be EUR 3-4 bln, and will instead build a terminal to receive and store liquefied natural gas (LNG), Bogdan Borusewicz, speaker of the Polish Senate, said at a Thursday press conference in Moscow.

In answer to an Interfax question whether Poland was planning to join the NEGP project, Borusewicz said: "No. Costs [of joining NEGP] will be EUR 3-4 bln and we will need to build a plant to store LNG."
Poland, which is currently a major transit country for Russian gas exports to Europe, has voiced concern about the NEGP, which bypasses the country and could therefore lead to it being shut off from Russian gas supplies without affecting the rest of Europe. Borusewicz reiterated these concerns. One of the alternatives to Russian gas being studied is the construction of an LNG terminal with an estimated cost of EUR 400-500 mln.

"Russia can't stop supplying gas to Poland now, since many Western European countries could suffer from this, but when the North Gas Pipeline is built, then it could stop such supplies," Borusewicz said. "From the point of view of strategic interests, this isn't good for our situation. We will need to find alternative gas suppliers in such a situation."

The NEGP project is too expensive, Borusewicz said. Furthermore, if a branch is laid to Poland, nothing will prevent it from being switched off.

"But each connection has a valve that can be turned off," he said.

The Senate speaker also said he was concerned since the pipeline will be laid along the bottom of the Baltic Sea where a lot of chemical weapons were dumped during World War II.
Source:wiadomosci.onet.pl



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