abarrelfullabarrelfull wrote on 22 Dec 2011 06:45
Tags: europe lng poland

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GAZ-SYSTEM S.A. signed an agreement on 14 December 2011 with the European Investment Bank (EIB) for financing of the strategic project for the Polish economy of the LNG Terminal in Świnoujście.

The financing will consist of GAZ-SYSTEM S.A. taking an investment loan of a maximum value of 600 mln PLN, with the possibility of obtaining the entire amount at once, wherein the minimum tranche can amount to 60 mln PLN. The credit will be available until December 2014. The maximum pay back time of the credit is 20 years. Interest will be charged in six- or twelve-month periods. Detailed financial conditions will be agreed during the request for quotations prior to each tranche.

This is the second investment credit that has been awarded to GAZ-SYSTEM S.A. by the EIB this year for the performance of key Company investments. The first contract was signed on 14 July 2011 for the construction of the Rembelszczyzna-Gustorzyn and Szczecin-Gdańsk pipelines.

"The European Investment Bank, due to its mission, creates the possibility of obtaining the cheapest financing on the debt market for projects that are important for the whole of Europe. The investment credit will enable our Company to finance the construction of the first LNG terminal in Central and Eastern Europe and Baltic Sea Region, which will enable the off-take of natural gas by sea from any direction in the world. The project was acknowledged by the Government as being of strategic significance for the economy and energy policy of Poland, which is why its timely completion requires effective funding and efficient coordination. The Polish LNG Terminal is also an element of the European transmission infrastructure within the North-South Gas Corridor and in the future will enable Central European countries access to the world LNG market,” Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A, said.

In the first stage of operations, the terminal will enable the off-take of approx. 5 bcm of natural gas annually, which constitutes approx. 35% of the domestic gas consumption. With increasing demand, it will be possible to extend the off-take capacity of the terminal to as much as even 7.5 bcm.

GAZ-SYSTEM S.A. is coordinating the entire investment and is responsible for the construction and operation of the Świnoujście – Szczecin gas pipeline as well as the gas compressor station in Goleniów. Construction of the terminal is being fulfilled by a subsidiary of GAZ-SYSTEM S.A. – Polskie LNG S.A. The Maritime Office in Szczecin and the Szczecin and Swinoujscie Seaports Authority S.A. are also involved in the investment and are preparing port infrastructure to receive tankers with a capacity of up to 216,000 m³. The date of completion of the construction stage, commissioning and start-up is planned for 30 June 2014.

The cost of constructing the LNG Terminal will amount to 2.4 bn PLN (net). A part of the funding for the investment has already been obtained from European Union funds from the Operational Programme Infrastructure and Environment 2007-2013 - in the amount of 456 mln PLN - and the European Energy Programme for Recovery - in the amount of approx. 220 mln PLN (55 mln EUR).

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