Polish gas company to slow down investments

Energy Trade

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State-owned PGNiG, a dominant gas supplier to the Polish market, will slow down some investment projects due to unstable situation on the global natural gas markets, the company's CEO Pawel Majewski has said, reported the Polish News Agency.

Majewski told reporters on Thursday that it is difficult to take any rational investment decisions when gas prices on global markets fluctuate and "uncertainty about the future gas price is so high." The CEO underlined, however, that the investments in gas deposits on the Norwegian Continental Shelf (NCS) are a high priority.

"They won't be limited," Majewski stressed. PGNiG Upstream Norway holds shares in 58 licenses on the NCS. The company estimates that its production volume will increase to over 2.5 billion cubic meters (bcm) of natural gas. PGNiG Upstream Norway produces oil and gas from 14 fields.

Last year, the company estimated all planned investments, excluding M&A (mergers and acquisitions) transactions, at PLN 7 billion (USD 1.71 billion), which now can be reduced.

Majewski declared that PGNiG has sufficient funds to cover its working capital. 

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