Bankruptcy Not to Delay the First Polish LNG terminal

Polskie LNG S.A, the company supervising the construction of the first LNG terminal in Poland, expects that bankruptcy of PBG will not delay completion of the import facility construction.

The key part of Gazoport in Swinoujscie has been already completed by the PBG unit, Hydrobudowa, while other Italian, French and Canadian companies are continuing their works.

PBG and its units, Hydrobudowa and Aprivia filed motions for bankruptcy protection, blaming "capital-thirsty road contracts, lack of total payment for the contract on the National Stadium and the prolonged talks with banks over securing financing."

The LNG terminal is located on the eastern bank of the Swina River, approximately 4.5 kilometres from the Polish-German border. Expected to be fully constructed and completed by 2014, it will have the capacity to supply more than one third of Poland's annual natural gas requirements.

Polskie LNG is owned by gas transmission system operator Gaz-System, which in turn is fully owned by the State Treasury.

A consortium of PBG and several other companies are also building the largest underground gas strorage facility in Poland, converted from the depleted Wierzchowice natural gas reservoir.