Polish Oil and Gas may have to cover pipeline modernization costs

State-owned Polish Oil and Gas (PGNiG) will have to fully cover a planned $200 million increase in the capital of EuRoPol Gaz, the company running the Yamal Pipeline in Poland, revealed the Russian press, as quoted by Gazeta Wyborcza. According to daily Wiedamosti, this was agreed during a meeting of Polish Prime Minister Leszek Miller and the head of Russian Gazprom, Aleksiej Miller. As PGNiG holds only a 48% stake in EuRoPol Gaz, this deal would actually mean that the Polish party would have to transfer money to the other major shareholder, Gazprom. The money raised would then be used to finance several major investments, including those that would increase the annual capacity of the pipeline from 20 billion cubic meters to 33 billion cubic meters. Both PGNiG and the state treasury, when questioned by Gazeta Wyborcza, maintained that no final decision has yet been taken. (Gazeta Wyborcza, p. 16) M.K.