Poland's own Baltic pipeline?

Polish Oil and Gas (PGNiG) has signed an agreement with Danish Energinet.dk regarding the development of a gas pipeline between the two countries. "This is an important step towards achievement of our strategic goal - the diversification of the gas supply to Poland," PGNiG's president Krzysztof Głogowski said.

The "Baltic Pipe" would be linked with the Skanled project, a gas pipeline which will connect Norway with Sweden and Denmark. "We are analyzing the options ... for the imports of Norwegian gas through the Skanled pipeline using the Danish pipeline grid and the Baltic Pipe," Głogowski explained. He added that PGNiG is also looking into the possibilities of transmitting gas from its Skarv and Snadd fields. In March, the gas and oil producer acquired a 15-percent stake in the oilfields located on Norway's continental shelf. PGNiG and Energinet.dk will also prepare an option that provides for the possibility of supply of gas between Poland and Denmark in both directions.

Głogowski explained that PGNiG will consider the possibility of financing the investment independently. Costs of the project are estimated at E200-250 (zł.752-940) million. As Economy Minister Piotr Woźniak told daily Rzeczpospolita, the work schedule for the project should be ready in July.

PGNiG had a net profit of zł.787.77 million after the first quarter of 2007, which represented a 25-percent increase from zł.627.67 million in the corresponding period of the previous year. The company's revenue was at the level of zł.5.05 billion at the end of March 2007 - a slight drop from the zł.5.1 billion earned in Q1 of 2006.