Feasibility study of a maritime LNG terminal

25.04.2006

Polish Oil and Gas Company has appointed, by way of a tender process, a consortium of companies which will develop a study including, among other things, the location of a maritime LNG terminal. The study will additionally provide analysis of gas demand as well as of the obtaining, trading and transportation of LNG. The cost of developing the study will amount to PLN 6 million.

The consortium is composed of the following companies: PwC Polska Ltd and PricewaterhouseCoopers LLP, ILF Consulting Engineers Polska and ILF Beratende Ingenieure GmbH (ILF Group), Chadbourne & Parke-Radzikowski, Szubielska and Partners. It boats extensive experience in providing analysis and management of large projects.

The study is due to completion in December 2006. Subsequently, a decision will be made on the construction and location of a maritime LNG terminal. The Northern Port in Gdansk ranks among the major location possibilities, which was evidenced by a letter of intent signed between Polish Oil and Gas Company and the Port of Gdansk Authority SA in February, this year. The offer presented by the Port of Gdansk enables substantial reduction in the construction costs as well as connecting the terminal to the gas distribution network.

According to the guidelines, the terminal would ensure the reception of 3 to 5 billion m3 of gas annually. Vessels would bring LNG from a number of directions. The possible suppliers include countries such as Algeria, Egypt, Libya, Nigeria, Qatar and Norway. The terminal could be put into operation in 2010 or 2011. A feasibility study for a competing terminal in Wilhelmshaven has already been developed by a German company, E.ON Ruhrgas, which additionally highlights the need to intensify action.

In line with declarations made by the Prime Minister in February during his visit to the Port of Gdansk, Polish Oil and Gas Company has also designated a Vice President of the Board for Strategic Projects. Appointed to this position was Mr. Bartlomiej Pawlak, who was previously an attorney for Polish Oil and Gas Company.