Supporting the LNG Terminal

20.07.2006

- In consideration of Poland's energetic security, we wish to take full advantage of the knowledge and expertise of independent experts and of the potential represented by the Pomeranian Region. We have appointed the Pomeranian Taskforce in Support of LNG Terminal Construction, in order to enable competent bodies, which will make a final decision, to obtain unbiased argumentation - says Deputy Anna Zielinska-Glebocka.

The LNG Terminal continues to be a current issue electrifying groups, who deem Poland's energetic security significant. Let us bring to mind that in April this year, Polish Oil and Gas Company had appointed a consortium composed of PricewaterhouseCoopers Poland, PricewaterhouseCoopers LLP, ILF Consulting Engineers Poland and ELF Bertrande Ingenieure, as well as Law Office Chadbourne & Parke-Radzikowski, Szubielska and Partners. By the end of December, the consortium is required to present a study that will provide the basis for making final decisions. These decisions, however, are not going to be easy since the cost of the terminal with its expected capacity of 3-5 billion m3 annually, will amount to approx. EUR 400 million and Polish Oil and Gas Company is considering the involvement of a prospective gas supplier in the financing process of terminal construction.

At the same time, Polish Oil and Gas Company is working on the overall assessment of the situation and examining different aspects of the proposed locations. Arguments supporting the Gdansk location are of high strength and include the fact that no dredging is required for the Northern Port in the Port of Gdansk, as it can accommodate vessels with a draft of up to 15 metres - i.e. the largest that can enter the Baltic Sea. This location enables the use of advanced infrastructure available in this area, while the Port of Gdansk has highly efficient connections with the national gas network - the only necessary addition is the construction of a 32-kilometre pipeline. Additionally, this connection will facilitate the delivery of gas from the LNG Terminal to the Jamal Pipeline and further exportation to Western Europe. The Northern Port has easy access to the underground gas storage facilities in Mogilno (Pomerania-Kujawy Region) with a capacity of 700 billion m3 and to the planned storage facilities in Kosakowo near the Tricity with a capacity of 300 billion m3 (total - 1 billion m3 of gas).

While these arguments remain strong, they fail to prove convincing to everyone, which gives rise to a number of initiatives in support of the location of the LNG Terminal in Gdansk. The Governor of the Pomeranian Region, Piotr Olowski has appointed a group of experts from among maritime commerce business representatives, to support the decision to locate the LNG Terminal in Gdansk. On 17 July this year, the Pomeranian Taskforce in Support of LNG Terminal Construction was appointed. At the main office of the Port of Gdansk Authority SA, a meeting was held with the participation of Deputy Anna Zielinska-Glebocka of Civic Platform, Piotr Karczewski - Deputy Governor of Pomeranian Region, Marcin Szpak - Deputy Mayor of Gdansk, Janusz Rachon - Rector of the Gdansk University of Science and Technology, Andrzej Tyszecki - Director of the Eko-Konsult Consulting Company and Andrzej Kasprzak - President of the Board of the Port of Gdansk Authority SA. The overall objective of the Taskforce is to deliver a substantial and reliable content-related presentation of the Pomeranian Region as a site best meeting the criteria of the construction of a terminal suited for the handling of LNG gas.