Poland's ZAP signs coal gasification supply deal

17 October 2008 14:47 [Source: ICIS news]

PRAGUE (ICIS news)--Poland's Zaklady Azotowe Pulawy (ZAP) has signed a letter of intent with local mining company Bogdanka for supplies vital to its plans for a coal gasification installation, the country's largest fertilizer producer said on Friday.

Bogdanka would provide some 1.2-1.3m tonnes/year of coal for the zloty (Zl) 3bn ($1.13bn, €0.84bn) plant, added ZAP.

Gasification of this supply would produce around 500,000 cubic metres of natural gas, enough to satisfy half the demand created by ZAP's fertilizer production, it added.

ZAP, which also produces melamine and caprolactam, said the gasification plant should be operational in around four years. The firm remained confident that financing for the plant could be arranged despite the global financial turmoil.

Bogdanka mine's annual output is approximately 5m tonnes/year of coal.

State-controlled ZAP was not available to comment on whether the Polish government's ongoing consolidation and privatisation process for the chemical industry could affect the realisation of the project.

($1 = €0.74/$1 = Zl2.66, €1 = Zl3.58)

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By: Will Conroy
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