KGHM signs deal with PGNiG, plans to build power plants

Energetyka, a subsidiary of copper concern KGHM, has signed a 20-year gas contract with Polish Oil and Gas (PGNiG) and this means that the parent company will be now able to construct its own power plants. KGHM will buy a total of 10 billion cubic meters of gas from PGNiG from 2007 onwards, neither party revealed the value of the contract. The next three years will be spent on constructing gas pipelines and investing in new power plants. Its possible that the money will be raised by disposing of a 19% stake in Polkomtel, owner of Plus GSM. The president of KGHM, Stanisław Speczik, estimates that thanks to the investment, the firm will save at least zł. 100 million per year. (Parkiet, p. 5) M.M.