Petrolinvest looks to grab larger stake in LPG market

Oil and gas company Petrolinvest, which has recently posted a positive financial result, is planning to develop gas distribution activities, as it still cannot drill its first barrel of oil.

"When we conclude the agreement with our partner TBS Enterprises Limited Partnership, we intend to jointly consolidate the domestic market of liquid gas distribution. Acquisitions will enable us to enter existing LPG distribution channels and therefore accelerate the fight for stakes in the liquid gas market," said Marcin Balicki, financial affairs management board member of Petrolinvest.

Experts do not question the chances of the firm in the consolidation of the LPG market, but stressed that the difficulty in taking over some segments will be greater than others. It will be easiest in terms of liquid gas for cars, which is fragmented, but in terms of gas for heating and technological purposes the situation will be much more complicated.

"We are close to signing an investment contract with TBS. Our partner is still carrying out due diligence in TPG Gaz." said Balicki.

TBS will eventually hold a 49% stake in TPG Gaz, which is a subsidiary of Petrolinvest.

"In line with announcement the contract will be concluded by June 15," said Balicki, it will be signed shortly after. (Puls Biznesu, pp. 1, 10) M.M.