PGNiG builds gas link to Gdansk refinery in Poland


GDANSK, Poland -- Polish natural gas utility PGNiG launched a gas link to Polish refinery Grupa Lotos on Monday, the two state-controlled companies said, making Lotos one of PGNiG’s top five customers by volume.

The accompanying agreement for PGNiG to supply the Gdansk-based refinery with natural gas, one of the largest supply contracts signed in recent years, fits into PGNiG's strategy of increasing gas sales, CEO Grazyna Piotrowska-Oliwa said in a news release.

Grupa Lotos will initially receive about 340 million cubic meters of gas per year, with deliveries eventually rising to 500 million cubic meters, the companies said.

PGNiG is also exploring for shale gas in nearby village Lubocino.

Expansion of local gas pipeline infrastructure is one of the prerequisites to make shale gas production commercially viable in Poland, should initial test wells yield positive results in coming years.

Dow Jones Newswires

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