PGNiG to form post-EU "gas wholesale" company

Polish Oil and Gas (PGNiG) plans to maintain control, at least for the next six years, over an anticipated new company supplying industrial consumers. It is an important strategic element, the aim of which is to prepare PGNiG for increased competition on the liberalized gas market. But time is running out. Upon Poland's accession to the EU in 2004 the gas monopolist will have to be ready to confront powerful western players who are greedily eyeing the local market and a restructuring program outlined by PGNiG's management is intended to prepare the company for the challenges ahead. The program foresees new companies being established on the basis of PGNiG's capital with the participation of foreign investors. One of the key bodies will be a company responsible for the so-called "wholesale gas trade" - i.e. drilling gas and supplying it to wholesale buyers. Such a company is a real gem so it is no surprise that the gas giant does not wish to lose control over it. Even though the aim of the restructuring is to look for investors for the new companies, the restructuring program foresees PGNiG as the sole owner of the "wholesale company" until 2008. (Puls Biznesu, p. 4) A.C.