Consortium building Polish LNG terminal seeks more money

PBG SA w restrukturyzacji w likwidacji

25/07/2014 13:03

By Anna Koper 
    WARSAW, July 25 (Reuters) - The consortium building Poland's 
first liquefied natural gas (LNG) terminal is in talks to 
increase the amount it is being paid, but there is no risk to 
the completion of the project, one of the contractors told 
Reuters on Friday.  
    The import terminal is being built on Poland's Baltic coast, 
at a cost of about 3 billion zlotys ($974 million), to cut the 
country's reliance on imported Russian gas. 
    The consortium comprising Italy's Saipem  SPMI.MI , Techint, 
and Polish construction firm PBG  PBGG.WA , is due to receive 
2.4 billion zlotys, according to the contract signed with entity 
that commissioned the project, state-controlled Polskie LNG.  
    "The discussion is conducted in a very good climate, because 
everybody wishes the terminal to be finished within the agreed 
schedule", PBG spokesman Jacek Balcer said on Friday. 
    "Of course one of the issues being addressed is the fact 
that due to changes in Polish law the investment will take more 
time than it was expected at the beginning and because of that 
we will incur higher costs", he added. 
    An official with Polskie LNG also said that were talks on 
the contractors' payment. 
    "In justified cases, when we are dealing with events which 
occurred through no fault of the general contractor, we are 
ready to talk," said Maciej Mazur, a spokesman at Polskie LNG. 
    "There is no basis in fact to say that anybody has plans to 
terminate the contract. Both sides have the same goal. They want 
to finish the project on time and with the highest quality." 
    He said there was no risk of delays. The construction is to 
be finished at the turn of 2014 and 2015. The first tanker is 
expected at the end of the first quarter next year.  
    The terminal at the port of Swinoujscie will be able to 
accept 5 billion cubic metres of gas per year, with plans to 
expand it to 7.5 billion. 
    At full power, the terminal could handle around half of 
Poland's current annual gas usage.  
    Poland still relies on imports for roughly two thirds of its 
annual gas usage of around 16 billion cubic metres, mostly from 
Russia. 
    The gas to supply the new LNG plant will come from Qatar. 
Under the contract between Poland and Qatar it will be 
substantially more expensive than Russian gas. 
($1 = 3.0799 Polish Zlotys) 
 
 (Editing by Christian Lowe and Alison Williams) 
 ((anna.koper@thomsonreuters.com)(+48 22 653 97 00)(Reuters 
Messaging: anna.koper.reuters.com@thomsonreuters.com)) 
 
Keywords: POLAND LNG/CONSORTIUM