Golden Gate may seek pipeline financing from markets

Golden Gate, which is planning the construction a zl.2 billion oil pipeline from Brody in western Ukraine to Plock in Central Poland, is considering a plan to raise the funds for the project from the Warsaw Stock Exchange (WSE). The plan envisages Golden Gate's stock market debut taking place in about a year. "I think that a public issue would be possible at the end of 2002. We also want to expand our company by bringing in major investors from the sector, such as Russian oil concern Lukoil or Canadian-American oil pipelines operator Enron," said Golden Gate deputy president and former Polish Oil and Gas (PGNiG) president Stefan Geron. General director of the Polish Oil Industry and Trade Organization (POPiHN) Jacek Wroblewski said that before any stock market launch, it is necessary to specify who will buy the oil sent along the pipeline. "I don't know if someone will decide to inject their money without Golden Gate proving that it has a buyer. In the case of the Baltic Pipe the decision to build a pipeline was preceded by Poland's pledge to import the gas," he said. According to a more optimistic forecast by Tomasz Orzel from BIG Bank Gdanski, 25% of the financing for the pipeline could be provided by Golden Gate, 50% could be obtained as credit, and 25% could be raised from the capital markets. (Puls Biznesu, p. 9) A.Z.