New pipeline from Denmark signals end of reliance on Russian gas sources

Polish Oil and Gas (PGNiG) will today sign a contract with Denmark's oil and gas company DONG on the construction of a new pipeline, projected to supply 2.5 billion cubic meters of gas to Poland annually, Economy Minister Janusz Steinhoff said on Monday. The 230 km pipeline, estimated to cost euro 300-350 million, depending on the diameter of the pipe and its construction, will be completed by the end of 2003. The gas supply from Denmark to Poland will be opened in September 2004. Apart from the Polish and Danish side, a Norwegian firm will join the investment next year and consequently the gas pipe will be connected to the Norwegian gas network. As a result, Poland will be able to import gas from Norway in the future, allowing it to diversify the source of its gas supply. Currently, around 70% of gas used in Poland is imported from Russia. (Prawo i Gospodarka, July 2, p.3, Zycie, July 2, p. 7) A.Z.