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Poland opens new natural gas pipeline, sees more imports from Germany

By MARYNIA KRUK and MARCIN SOBCZYK

A new natural gas pipeline in southwestern Poland, inaugurated Thursday, will allow the country to import gas from Germany more cheaply than from Russia, Poland's Treasury Minister Mikolaj Budzanowski told reporters.

The new pipeline, which expands the local pipeline system, will allow Poland to import 1.5 billion cubic meters of gas a year from Germany through a pumping station at the border point of Lasow.

The gas will cost more than 20% less via the new link than gas from the Yamal-Europe pipeline from Russia, Budzanowski said.

Poland's PGNiG and Russia's OAO Gazprom jointly own the Yamal-Europe pipeline.

Poland will want to boost the capacity of the link with Germany in the future and plans to eventually use the pipeline to export Polish gas, Budzanowski added.

The ongoing work to upgrade and expand Poland's pipeline infrastructure is run by state-owned Gaz-System.

The denser network will enable Poland to create a market for natural gas and will facilitate trade in shale gas, which many Polish and foreign firms are exploring in the central European country.


Dow Jones Newswires

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