Lack of real government causes real problems for PGNiG

Polish Oil and Gas (PGNiG) needs financial backing, preferably before its Initial Public Offer, which is scheduled to take place early next year. Yesterday, PGNiG revealed its strategic goals. They want to develop the domestic market, restructure, expand its gas network and build new underground gas containers. The company plans also to raise gas production and to sign contracts with foreign gas producers form Norway and Ukraine. PGNiG estimates that its investments for 2005-7 would cost zł.7.2 billion. "In order to launch our new projects we have to be sure that we will have enough money", said PGNiG president Marek Kossowski. At present he cannot predict the Treasury Minister's decision on the possibility of allowing the company to increase its capital, which blocks any decisions being taken for the time being. (Puls Biznesu p. 6, Parkiet p. 5) J.J.