4/11/2007

Poland's gas monopolist PGNiG has no plans to import more gas despite new regulations

Poland's gas monopolist PGNiG is not planning to increase natural gas imports despite new regulations that came into force on April 7 and that oblige companies that import gas to Poland to keep reserves at a level equal to 3% of average imports.

"Currently we fulfill all of the requirements," PGNiG's spokesman Tomasz Fill told Interfax on Tuesday.

However, according to the new regulations in the fall of 2012, gas importers will have to increase these reserves from current 11 days to 30 days, which will require both building new storage capacities and increased gas imports.

"We are investing in new storage capacities but we planned to do that anyway despite the fact that new regulations were approved," Fill said. "We are planning to increase our storage capacity by more than 1 bln cubic meters to 2.8 bln cubic meters in 2012."

The legislation is aimed at improvement of Poland's energy security and will result in the establishment of 90-day crude oil and liquid fuel reserves in 2009 and 30-day natural gas reserves in 2012.

The company also pointed out that the increased gas imports will not need to come from Russia, and that increasing Polish dependence on Russia for gas is not necessary.

"We are planning for supplies of LNG gas and for supplies from the Norwegian pipeline by that time so that gas does not have to be purchased in Russia," Fill said.

Currently, PGNiG imports 6.8 bln cubic meters of gas from Russia which accounts for over 66% of total gas import and for nearly 50% of the domestic consumption which amounts to 14.3 bln cubic meters.

PGNiG did not estimate potential impact of implementation of the new regulations on gas prices.

"It is hard to predict what the gas prices will be in five years," Fill said.
Source:biznes.onet.pl



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