Financing secured for strategic gas pipeline construction in Poland
On 14 July 2011, GAZ-SYSTEM S.A. signed an agreement with the European Investment Bank (EIB) for financing of projects for the construction of the Rembelszczyzna-Gustorzyn and Szczecin-Gdańsk pipelines that are strategic for the Polish gas transmission network.
The financing will consist of GAZ-SYSTEM S.A. taking an investment loan amounting to 600 mln PLN in total, with the possibility of obtaining the entire amount at once. The loan will be available until December 2014. The maximum tenor of the financing is 20 years. GAZ-SYSTEM S.A. will have the possibility of taking a one-time credit. The minimum one-time tranche of the credit payment can amount to no less than 60 mln PLN. Interest shall be charged in 6 or 12 month periods. The detailed financial terms and conditions are subject to agreement under the request for quotes procedure before each tranche.
“The investment loan will enable our Company to finance the construction of two gas pipelines on the Rembelszczyzna-Gustorzyn and Szczecin-Gdańsk route. Both projects constitute elements of the extensive and large-scale investment plan of GAZ-SYSTEM S.A., involving the construction of over 1,000 km of new gas pipelines that are crucial for the development of the national transmission infrastructure by 2014, which will lead to the improvement of the energy security of Poland. GAZ-SYSTEM S.A. has already secured financing for all the strategic gas pipelines under construction and development in Poland. In March 2011, an agreement was signed with commercial banks and co-funding was obtained from the European Union." Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A., explained.
Mr Anton Rop, EIB Vice-President responsible for lending in Central Europe, including Poland, stated: “The projects will help to meet the domestic demand for gas replacing less efficient and more polluting energy sources and contribute to the diversification of the energy supplies in Poland”.
The Rembelszczyzna-Gustorzyn and Szczecin-Gdańsk gas pipelines are co-financed from the Operational Programme Infrastructure and Environment within the European Regional Development Fund.
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The Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic, wholly-owned State Treasury Company responsible for the transmission of natural gas throughout Poland. The Company manages assets worth approx. 5 bn PLN comprised mainly of elements of the transmission system, e.g. more than 9.7 thousand km of high pressure pipelines, 14 compressor stations, 56 hubs and 970 exit points. The Company employs over 2,000 people.
GAZ-SYSTEM S.A. is planning to build over 1,000 km of new gas transmission pipelines by 2014. The most important will be constructed in North Western and Central Poland (Szczecin-Lwówek, Swinoujscie-Szczecin, Szczecin-Gdansk, Włocławek-Gdynia, Rembelszczyzna-Gustorzyn, and Gustorzyn-Odolanów), as well as in Lower Silesia. The development of the gas transmission network in Poland may constitute an important element of the North - South Gas Corridor connecting the LNG terminal in Świnoujście with the planned Adria LNG terminal with the aid of the transmission infrastructure of Central European countries.
GAZ-SYSTEM S.A. is also performing the construction of the new Poland – Czech Republic interconnector, which will be put into operation as soon as in 2011. The Company is also developing the Lasów connection on the Polish - German border until the end of 2011, which will enable increased import of gas from the western direction.
Many of the strategic investments fulfilled by GAZ-SYSTEM S.A. have obtained funding from the European Union in the amount of approx. 1.7 bn PLN. The Company was awarded funding from the following EU programmes: EEPR (European Energy Programme for Recovery), TEN-E (Trans-European Networks – Energy), IE OP (Innovative Economy Operational Programme) and OPI&E (Operational Programme Infrastructure and Environment). The total estimated value of the investment programme by 2014 is 8 bn PLN.
GAZ-SYSTEM S.A. is also the owner of the Polskie LNG S.A. Company, which was established to construct the liquefied natural gas terminal (LNG) terminal in Świnoujście.
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The European Investment Bank (EIB) is the long-term lending bank of the European Union. Its main task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the EU Member States, its lending activities also include financing investments in future Member States of the EU and EU partner countries.
The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. It is the largest supranational borrower and its consistent AAA rating is underpinned by firm shareholder support, a strong capital base, excellent asset quality, conservative risk management and a sound funding strategy.
Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A.
and Tilman Seibert, Director Baltic Sea Department, Lending Operations in the EU
Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A.
Tilman Seibert, Director Baltic Sea Department, Lending Operations in the EU
Contact:
GAZ-SYSTEM S.A.
Małgorzata Polkowska, Spokesperson
Tel. 22 22 -01 -546 691 -911 -217
pr@gaz-system.pl;
www.gaz-system.pl
Contact:
EIB Press Office
Dušan Ondrejička, Senior Press Officer
Tel.: +352-4379-83334,
d.ondrejicka@eib.org,
www.eib.org
