01.10.2012

GAZ-SYSTEM raised EBRD financing for the development of the LNG in Świnoujście

On 4 October 2012, GAZ-SYSTEM S.A. signed an agreement with the European Bank for Reconstruction and Development for a PLN 300 million investment loan to be used for the development of the LNG  in Świnoujście.  Thereby, the company closed the financing for this strategic project. 

 “The LNG  in Świnoujście is crucial for the energy security in Poland and Central Europe as it brings the diversification of the natural gas supply sources and directions in the region. The European Bank for Reconstruction and Development is committed to supporting the improvement of energy security in Eastern Europe and the LNG  in Poland is a major step forward in the development of Trans-European Energy Networks” - commented Riccardo Puliti, Managing Director, EBRD, charge of the energy sector, when signing the agreement.

The loan will be made available to GAZ-SYSTEM S.A. from the moment of signing of the agreement until the end of year 2014, and the amortisation period will be 12 years. Interest periods fall every 6 months, the base rate is 6M WIBOR and the margin will remain fixed for the entire term of financing. The full amount of the loan will be transferred to Polskie LNG S.A., the company being in charge of the development of the project, either as a loan or in the form of capital injection.

“The construction of the re-gasification  in Świnoujście is one of the key projects being currently developed in Poland. It is another element supporting the diversification of energy sources, which will contribute to the strengthening of the country's energy security. The involvement of such prominent external institutions in the financing of this project only proves its high profile, significance and credibility” – said Mikołaj Budzanowski, the Minister of State Treasury.

“The growth of LNG importance over the recent years is worth noting – in 2010 the global share of LNG in the natural gas supply reached over 32% and is sill on an upward trend. The natural gas liquefaction technology enables the transportation of LNG from any supplier around the world, eliminates geographic barriers and creates a truly global market for gas. The LNG  will be a window opening this global market for Poland. Having this in mind, we are particularly glad to have secured 100 percent of the financing already at this stage of the project. The signing of another agreement with EBRD also demonstrates that the funds allocated for this strategic development are being spent by Polskie LNG in accordance with best practice standards and most efficiently” - concluded Rafał Wardziński, Presdent of the Management Board of Polskie LNG S.A.


To finance the project worth PLN 2.7 billion, apart from the loan extended today by the European Bank for Reconstruction and Development, GAZ-SYSTEM S.A. already raised financing from the European Investment Bank in the amount of PLN 600 million. Furthermore, the subsidiary company, Polskie LNG, is a beneficiary of EU co-financing under two other programmes: European Energy Programme for Recovery (EEPR - for PLN 245 million and the Operational Programme Infrastructure and Environment – for PLN 456 million). The contribution of GAZ-SYSTEM S.A.'s own funds to the project budget will amount to over PLN 1.1 billion. 

 “With the EBRD funds, the financing of the LNG  in Świnoujście is now fully secured. The efficient financing structure for the  development not only demonstrates excellent project coordination capabilities of the company but also shows that the projects implemented by GAZ-SYSTEM S.A. fit in with the Community's policy to develop an integrated gas transmission network, enhance security of gas supply within the EU and to create a common European energy market. It is also a good indication for the market, especially the shippers who would like to build their purchasing strategies based on LNG imports - observed Jan Chadam,  President of the Management Board of GAZ-SYSTEM S.A.

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The Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company wholly owned by the State Treasury, and is responsible for the transmission of natural gas in the entire territory of Poland. The Company manages assets worth approx. 5 bn PLN  comprising mainly the transmission system components, e.g. more than 9.8 thousand km of high pressure pipelines, 14 compressor stations, 56 hubs and 970 exit points. The company has over 2000 employees. GAZ-SYSTEM is also the sole shareholder of Polskie LNG S.A., a special-purpose vehicle established for the development of the LNG  in Swinoujście.
By 2014, GAZ-SYSTEM S.A. will complete over 1,000 km of new transmission pipelines. The most important ones will be built in north-western and central Poland (Szczecin-Lwówek, Świnoujście-Szczecin, Szczecin-Gdańsk, Rembelszczyzna-Gustorzyn i Gustorzyn-Odolanów). The development of the gas transmission network in Poland may become an important element of the North - South Gas Corridor connecting the LNG  in Świnoujście with the planned LNG  in Croatia through the transmission infrastructure of Central European countries.
In 2011, GAZ–SYSTEM S.A. completed the construction of the Włocławek–Gdynia gas pipeline and gas compressor stations in Goleniów and in Jarosław. The Company has also started up the new Polish-Czech interconnector enabling the transmission of approx. 0.5 bcm of gas annually. GAZ-SYSTEM S.A. has also been developing gas pipelines in Lower Silesia to enable the off-take of increased amounts of gas from the western direction.  The capacity at the Lasów point on the Polish-German border presently amounts to 1.5 bcm annually (against the previous capacity of 0.9 bcm per year). The projects completed by GAZ-SYSTEM S.A. in 2011, along with the availability of a virtual reverse flow service for the Yamal pipeline, resulted in incremental technical capability for the import of over 3.3 bcm of gas annually from new sources (approx. 30% of the current import volume).

 


 

 


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