Build pipeline to link gas grids of Poland and Germany - PIPC

01 December 2010 16:37  [Source: ICIS news]

PRAGUE (ICIS)--The Polish Chamber of the Chemical Industry (PIPC) is calling for investment in a short interconnector pipeline that would link the gas grids of Poland and Germany, it said on Wednesday.

Ending the dependence of Poland's fertilizer and other chemical producers on Russian gas supplied via Polish gas monopoly PGNiG had to be treated as a higher priority than it had been previously, PIPC added.

The chamber said it was nearing the completion of a feasibility study for a 3bn cubic metres/year pipeline that would be built along a route crossing the Polish/German border near Police, in the West Pomeranian province in the northwest corner of Poland.

It was hoped that the Polish treasury ministry would back the project "to source EU gas" by helping to raise investment from potential contributors such as state-owned chemical companies and Polish gas transmission operator Gaz-System.

The past year has seen the chamber repeatedly express concerns that the competitiveness of Polish chemical companies had been severely undermined by the fact that while they are tied to PGNiG's long-term contractual gas prices, foreign rivals had access to much cheaper gas provided by the international spot market.

The treasury ministry said that the chamber's pipeline proposal was yet to be reviewed, and added that the Polish and Czech governments had already backed a proposal to build an interconnector pipeline linking their countries' gas grids by October 2011.

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By: Will Conroy
+44 20 8652 3214

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