Polish gas company to slow down investments

Jakub Kamiński/PAP

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, PGNiG’s CEO Pawel Majewski has said.

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 are a high priority. "They won’t be limited," Majewski stressed.

PGNiG Upstream Norway holds shares in 58 licences on the Norwegian Continental Shelf. The company estimates that its production volume will increase to over 2.5 billion cubic metres (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 transactions, at PLN 7 billion (EUR 1.5 billion), which now can be reduced.

Majewski declared that PGNiG has sufficient funds to cover its working capital. "In the current circumstances of high gas prices, we need more working capital which can be obtained through bank loans. We are glad that the government wants to introduce guarantees of the State Treasury in case of prolonged crisis," Majewski noted.