PGNiG to launch new distribution companies in January

Polish Oil and Gas (PGNiG) is preparing to launch six new separate distribution companies. The new entities, to come into existence in January 2003, will cover geographical areas similar to present PGNiG gas distribution districts. This will allow them to base their operations on an existing account settling system, which will help keep costs down. One of the biggest companies to be spun off from PGNiG will be the Mazowiecka Spolka Dystrybucyjna (MSD) gas distributor that will consist of Gazownia Warszawska and gas providers in Lodz and Bialystok. MSD's total start-up capital may reach zl. 1.2 billion and will partially come from PGNiG assets. Next year it will be able to spend zl. 50 million on investing in connection points. The company is holding talks with the Treasury and Finance Ministries about the possibility of annulling tax payments for the assets that the firm will bring into the new entities. According to, prospective director of MSD, Michal Szubski, PGNiG should now develop into a multi-utility company, whose services would comprise of electricity, heat and water distribution and may seek to establish capital connections, possibly with Stoen. (Puls Biznesu, p. 7) J.K.