Poland's PGNiG may delay plans to build LNG terminal - report

Poland's natural gas monopoly PGNiG might delay its plan to build a liquified natural gas (LNG) terminal on the Baltic coast due to failures to sign supply contracts, Dziennik newspaper reported, giving no named sources.

The paper said new Treasury Minister Aleksander Grad has ordered analysis of the project along with PGNiG's other major investment - the construction of the Baltic Pipe pipeline connecting Poland to Denmark.

PGNiG has planned to build an LNG terminal in Swinoujscie on the Baltic coast by the end of 2011 and receive 2.5 bln cubic metres of liquified gas per year as part of Poland's strategy to limit its dependence on imports from Russia.

The company has been looking to secure liquid gas supply for the terminal, which may cost at least 450 mln eur to build. But its talks with Algieria have stalled, the newspaper said.

'It takes between six and seven years to recieve first supplies (of gas) after the contract has been signed,' daily quotes ruling Civic Platform deputy Andrzej Czerwinski as saying.

'Without stable supplies it doesn't make sense to build the terminal,' Czerwinski, who is also a deputy head of parliament's economy committee, added.

Source: forbes.com