19 May 2007

ZA Puławy Plans to Diversify Gas Supplies

Construction of a unit for producing gas from coal is one of the elements of the Company’s new strategy for 2007–2017. The unit’s output would satisfy 50% of ZA Puławy’s current gas requirements.

Currently, talks are conducted with Lubelski Węgiel Bogdanka, a coal producer, which is interested in participating in the project, reports Krzysztof Lewicki, President of the Management Board of ZA Puławy. The unit would also fully cover the demand for electricity and steam at ZA Puławy.

The decision to commence the investment project worth PLN 2bn will be probably reached by the end of the year. The unit would be constructed within 3–4 years. The project is to be located in the Lublin region and would involve establishment of a technology cluster, thus up to 50% of the financing could be obtained in the form of the EU funds.

We have had preliminary profitability analyses carried out, which show that the cost of energy production by such a unit would be lower by one fourth compared to the technologies currently used by the energy industry, President adds.

The project is not the sole option of cheaper gas supplies for Puławy. The Company is also considering construction of a unit situated directly on gas reserves discovered in Poland, to be implemented in cooperation with PGNiG, as well as investment projects in the Middle East, Africa or Australia, where gas prices are far lower. 

The annual consumption of natural gas at ZA Puławy amounts to approximately 900m square meters. The plant’s daily consumption of electricity is160–170 MW, 117 MW of which the Company is able to generate by its own means.